December 2023, Securities Business Hall in Fuyang, China.
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China is reportedly considering a bailout plan backed by offshore money to stem the slump in its sluggish stock market. bloomberg news.
The report said, citing people familiar with the matter, that Chinese authorities are planning to purchase around 2 trillion yuan of domestic stocks through the Hong Kong market to stabilize the market, mainly through the offshore accounts of Chinese state-owned enterprises. The company aims to raise $278 billion ($278 billion).
Chinese policymakers are also setting aside 300 billion yuan of local funds to be used to invest in domestic stocks through state-owned financial firms China Securities Finance Corporation and Central Huijin Investment Co., according to Bloomberg.
Mainland China's CSI300 index fell 11.4% last year, the third consecutive year of decline.hong kong Hang Seng Index It fell nearly 14% in 2023, making it the worst performer among major Asian stock markets.
The Bloomberg report came a day after Chinese Premier Li Qiang said in a speech: State Council meeting The country plans to roll out measures to stabilize the stock market.
„We must take stronger and more effective measures to stabilize markets and confidence,“ Li said, according to state media.
“It is necessary to improve the coherence of macro-policy directions, strengthen the innovation and coordination of policy instruments, strengthen and strengthen the positive recovery of the economy, and promote the stable and healthy development of capital markets. .”
No further details were announced at Monday's meeting, and there was no indication of how much money would be mobilized or when the measures would be implemented.
China has previously noted that it has not relied on stimulus so far.
„In promoting economic development, we did not rely on large-scale stimulus. We did not pursue short-term growth while accumulating long-term risks,“ Premier Lee said in a speech last week. Ta. World Economic Forum in Davos, Switzerland. “Rather, we focused on strengthening our internal drivers.”
Referring to this, Li pointed out that China's economy will grow by about 5.2% in 2023.Official numbers too Last year, China's GDP growth rate was 5.2%.
Read more about Bloomberg's report that China is considering a stock market rescue plan.