Proposed $280 Billion Market Stabilization Fund Set to Steady China's Stock Exchange

The Financial and Banking Institute, a Chinese policy think tank, has called for the issuance of 2 trillion yuan (280 billion dollars) in special treasury bonds to establish a stock market stabilization fund in China. According to the proposal by the Financial and Banking Institute, which operates under the Chinese Academy of Social Sciences (CASS), such a fund could stabilize the market by buying and selling blue-chip stocks and exchange-traded funds (ETFs). The proposal is part of the institute's quarterly report on China's economy. Last month, when asked about the establishment of a stock market stabilization fund, People's Bank of China Governor Pan Gongsheng informed reporters that a study related to the proposal was being conducted.