China’s Securities Regulatory Commission held a “seminar” on Thursday.

If you weren’t invited, count yourself lucky. These sorts of gatherings are generally convened for one purpose: Exhorting attendees to fix something.

In democracies, or in a Western corporate setting, that might mean an opportunity for interested parties to exchange views on the source of the problem and also on possible solutions. In the context of authoritarian regimes, though, the situation is more akin to a lunch meeting at Satriale’s Pork Store. (“That thing over there — you know, with da stocks.” “Ay, Tone, the stocks — they ain’t doin’ so good.” “Yeah, I know. I need yous to straighten it out.”)

Earlier this week, both Hong Kong and Mainland shares staged an abrupt late-session turnaround which looked suspiciously like state-buying to some observers.

The vaunted “national team” might’ve been in the market, and if the CSRC readout is any indication, we may see more of that going forward.

Pension funds, large banks and insurers promised to double down on efforts to stabilize Chinese equities, where that means they’ll be buying stocks. Executives at some funds with a long-term focus were “urged” to increase their holdings.

The readout of the seminar referenced last month’s Politburo meeting, which was “studied in-depth.” The “spirit” of that meeting needs to implemented earnestly, the CSRC said, adding that China should “promote the construction of a modern capital market with Chinese characteristics.”

One “characteristic” of Chinese capital markets is state-buying when things go wrong. Just ask 2015. Now, in 2023, funds are asked to once again do their patriotic duty. “My country’s economy is currently in a critical period of stable recovery and high-quality development after the epidemic,” the statement went on. If you’re a fund with a medium- or long-term horizon, you’re staring at “rare opportunities to participate in the reform and development” of China’s capital markets.

Overseas funds don’t seem to recognize those “rare opportunities.” Foreign investors have dumped almost $11 billion in mainland shares over 13 sessions, a record-long streak of selling. “Foreign sentiment towards China equities, using the Northbound Stock Connect as a proxy, [was] generally positive — then came August,” BNY Mellon’s Wee-Khoon Chong wrote Thursday, describing “panic-like selling of China exposures.”

As the figure above shows, MTD net outflows are the largest ever. As the same BNY Mellon analyst exclaimed, it’s “arguably a shock greater than the COVID era!”

But don’t worry. Domestic funds will make up the difference. Or at least if the CSRC has anything to say about it. “Under the new situation of domestic financial market reform, it is time for medium- and long-term funds to accelerate the development of their equity investments,” the regulator decreed, adding that “all kinds of institutions should improve their understanding of their responsibilities and attach importance to equity investment from a strategic perspective.”

China didn’t name the banks, funds and insurers who attended today’s “symposium.” But in the event Chinese equities don’t turn around, you’ll find out who some of them were when senior executives start disappearing.