China should issue 2 trillion yuan (US$280 billion) in special bonds to set up a stock market stabilization fund in a broader effort to support the economy, a government-run research agency proposed on Tuesday. did.
The fund will help enhance the inherent stability of the capital market and promote stable economic growth, according to a report by the Financial and Banking Research Institute under the Chinese Academy of Social Sciences.
The call to buy blue-chip stocks and exchange-traded funds (ETFs) has become an important gauge of sentiment for the stock market and a tool to restore confidence, especially for the A-share market’s more than 200 million individual investors. It happened while I was there.
The Beijing-based government-run think tank said, “The stock market will respond more quickly to policy benefits, making it easier to attract additional capital from household savings, bank wealth management, and foreign capital, thereby increasing market confidence almost instantly.” “It will increase,” he said.
At a press conference late last month at which China fired its policy bazooka of economic stimulus, People’s Bank of China Governor Ban Gongsheng said Beijing was “studying” a state-backed stabilization fund that could boost stock market confidence. He said that
But China’s stock markets have been volatile over the past month amid concerted government efforts to revitalize the economy through wide-ranging stimulus measures.
