Chinese authorities are considering a package of measures to stabilize a slumping stock market, according to people familiar with the matter, after previous attempts to restore investor confidence failed and prompted the Prime Minister Li Qiang To call for “strong” steps.
Policymakers are seeking to mobilize about 2 trillion yuan ($278 billion), mostly from the offshore accounts of Chinese state-owned companies, as part of a stabilization fund to buy local stocks through a Hong Kong stock exchange link, the people said. Discussion of a private matter is recognized. They said they also allocated at least 300 billion yuan of local funds to invest in local stocks through China Securities Finance Corp. or Central Huijin Investment Ltd.