China weighs stock market rescue package backed by $278 billion

(Reuters) – Chinese authorities are considering a package of measures to stabilise a slumping stock market, Bloomberg News reported on Tuesday, citing people familiar with the matter.

Chinese policymakers are seeking to mobilise about 2 trillion yuan ($278.53 billion), mainly from the offshore accounts of Chinese state-owned enterprises, as part of a stabilisation fund to buy shares onshore through the Hong Kong exchange link, Bloomberg News reported.

Chinese officials have also allotted at least 300 billion yuan of local funds to invest in onshore shares through China Securities Finance Corp or Central Huijin Investment Ltd, according to the report.

They are also weighing other options and may announce some of them as soon as this week if approved by the top leadership of the country, the report said.

The China Securities Regulatory Commission could not be immediately reached for a comment.

($1 = 7.1806 yuan)

(Reporting by Nilutpal Timsina in Bengaluru; Editing by Christian Schmollinger and Muralikumar Anantharaman)