We knew things were unstable but that dollar amount implies the foundations are made of gelatin. From Bloomberg via Yahoo Finance, February 4:
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.
Chinese authorities are considering a package of measures to stabilize the slumping stock market, people familiar with the matter told Bloomberg News last month. Policy makers are seeking to mobilize about 2 trillion yuan, mainly from the offshore accounts of Chinese state-owned enterprises, they added.
China’s stock selloff deepened last week, with a key index falling to a five-year low. The CSI 300 Index benchmark gauge tumbled 6.3% in January, a record sixth straight month of losses.
The stock market has undoubtedly shown liquidity pressure in the short term, Liu said, speaking to the paper in his capacity as director of another think tank known as China Chief Economists Forum....
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Also Bloomberg via Yahoo Finance, Feb 4:
China Vows to Stabilize Markets After Rout, Offers No Detail
And:
China Set to Skirt Lunar New Year Cash Crunch on PBOC Injection
