China Mulls Bourse Rescue With $278 Billion Fund

Chinese authorities are considering measures to stabilize a slumping stock market, as reported by Bloomberg News, citing people familiar with the matter.

China's stock markets have had a wretched start to the year, with patchy economic growth and a renewed slump in home sales last week solidifying foreign investors' resolve to steer clear.

The news drew a skeptical response from underwhelmed investors, as Reuters disclosed.

Policymakers are seeking to mobilize about 2 trillion yuan ($278.53 billion), mainly from offshore accounts of state-owned enterprises, as part of a stabilization fund to buy shares onshore through the Hong Kong exchange link, as reported by Bloomberg News.

The China Securities Regulatory Commission (CSRC) did not respond to a Reuters request for comment.

Chinese stocks rose immediately after the report but reversed course later to slip lower, and were last broadly flat. The blue-chip CSI300 Index was rooted near a five-year low, while the Shanghai Composite Index remained below the psychologically key 2,800-point mark.

China's stock markets have had a wretched start to the year, with patchy economic growth and a renewed slump in home sales last week solidifying foreign investors' resolve to steer clear.

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