Chinese authorities mulling stock market rescue package - report

(Sharecast News) - Beijing is considering a possible rescue package to help bolster China's struggling stock markets, it was reported on Tuesday. According to Bloomberg, citing unnamed sources familiar with the matter, Chinese authorities are considering using around Y2trn (£220bn) to buy stocks in order to stabilise markets.

The money would primarily come from offshore accounts of state-owned companies.

It follows a report by state TV on Monday, which said the cabinet planned to take "forceful and effective measures" to stabilise markets and boost confidence. The report cited a meeting chaired by premier Li Qiang.

China's markets have been hit hard by the country's slowing economy, the crisis in the property sector and ongoing geopolitical tensions.

Last year, Shanghai's blue chip CSI 300 Index lost 11% and Hong Kong's Hang Seng Index 14%, making it one of the worst performing benchmark indices across all large markets.

Investors looked to broadly welcome the potential intervention, with the Hang Seng closing up 2.6% on Tuesday, although the CSI 300 was largely flat.