2023-10-13 05:04:09 ET
China may set up a stabilization fund to boost confidence in its $9.5T stock market that has been struggling in the backdrop of a weakening economy, a deepening property crisis and geopolitical headwinds, Bloomberg reported citing unnamed sources.
Under the proposed plan submitted by financial regulators to China's leadership, the state-backed fund could have access to capital worth hundreds of billions of yuan.
Implementation details are yet to be finalized, the report said, and there's a chance that the proposal could be scrapped.
The development comes a day after China's sovereign wealth fund Central Huijin Investment raised its stake in the country's 'Big Four' banks. While the stake raise was marginal, it kindled hopes for fresh stimulus from authorities.
Foreign investors have been selling off Chinese shares as the economy continues to struggle, forcing authorities in the country to explore steps to shore up investor confidence.
The benchmark CSI 300 Index ( SHSZ300 ), which tracks the top 300 Chinese stocks, has declined 10.3% in the last six months and is down about 37% from the record high seen in 2021.
More on China
- How China Is Dodging The Doom Loop
- China Focus: Are Investors Being Too Pessimistic?
- China consumer prices unexpectedly flat in September
- China's exports, imports fall amid weak global demand
For further details see:
China eyes stabilization fund to boost weakening stock market - report