China Academic Calls for $1.4 Trillion Stock Stabilization Fund
Stock figures in Pudong's Lujiazui Financial District in Shanghai.
Photographer: Raul Ariano/BloombergThis article is for subscribers only.
China should set up a stocks stabilization fund as soon as possible to boost market confidence, with an aim to get its size to 10 trillion yuan ($1.4 trillion) or more, according to an academic at a government think tank.
The size of the fund should be around $300 billion to $500 billion in the short term, the 21st Century Business Herald reported, citing Liu Yuhui of the Chinese Academy of Social Sciences. It should then be increased based on the value of the country’s capital market, Liu told the paper in an interview.