Chinese equities may be set for a boost with authorities reportedly preparing to invest hundreds of billions of dollars in the market.
Around 2 trillion yuan ($278 billion) could be mobilized to support Chinese equities, according to a «Bloomberg» report citing unnamed sources. The funds will mainly come from the offshore accounts of Chinese state-owned enterprises.
Another 300 billion yuan could also be invested in onshore equities via China Securities Finance Corp. or Central Huijin Investment Ltd. Other options are being considered and an announcement could be made as soon as this week if approved by top leadership.
The downturn of Chinese equities persists with global investors continuing to shun the market due to weak sentiments. Year-to-date, the CSI 300 and the Hang Seng Index are down 4.5 percent and 8.4 percent, respectively.
