China reportedly considering fund to stabilise stock market

The news: Chinas government is considering implementing a stabilisation fund to prop up its USD9.5 billion ($15.03 billion) stock market, Bloomberg reports, citing unnamed sources. Financial regulators including the China Securities Regulatory Commission have recently submitted the plan to government leaders, but it is unclear whether it will proceed.

The numbers: China's CSI 300 index has fallen roughly 37% from 2021 highs, as foreign funds continue to sell Chinese stocks amid slowing growth, a property crisis and rising geopolitical issues.

The context: Earlier this week China's sovereign wealth fund bought the equivalent of $103 million of shares in the countries biggest banks, as policymakers consider more ways to keep the music playing for the world's second largest economy.