Asian shares rose after news of Chinese policymakers considering new rescue measures to stabilize their slumping stock market. The rally was led by Chinese stocks, with a gauge of Chinese firms listed in Hong Kong jumping 3.8% and the CSI 300 mainland benchmark rising 0.3%. Bloomberg News reported that authorities are looking to mobilize about 2 trillion yuan ($278 billion) from offshore accounts of Chinese state-owned enterprises to create a stabilization fund to buy shares onshore, along with earmarking at least 300 billion yuan of local funds to invest in onshore stocks.
The potential rescue package signals a commitment from Chinese authorities to stabilizing the stock market amidst recent volatility. The injection of funds and purchase of shares onshore are aimed at providing support and confidence to investors, ultimately working to stem the downward trend in market performance. The news of these measures played a significant role in boosting investor sentiment, resulting in a positive impact on Asian share markets. The developments indicate a proactive approach from policymakers to address current market challenges and restore stability, which is likely to have a broader effect on global markets as well.