OREANDA-NEWS  The Chinese authorities are trying to keep the falling national stock market at the expense of a special stabilization fund. For these purposes, they collect about 2 trillion yuan ($278 billion), mainly from the accounts of state-owned enterprises. This is reported by Bloomberg with reference to informed sources.

All funds will be used to buy back shares on the Hong Kong Stock Exchange. Another 300 billion yuan has already been allocated from local funds for investment through China Securities Finance and Central Huijin Investment (a state-owned corporation and fund).

Another way to save stocks and bonds will be to reassure domestic investors, although the material does not specify what procedure is in question. Beijing has to take non-trivial measures due to the market falling to a five-year low.

China's main stock market index, the CSI 300, has been falling for many months in a row. Despite the attempts of the authorities to prove to investors the success of economic policy, the trend has intensified since the beginning of the year, which forces to increase spending.

Earlier it was reported that China's largest state-owned banks began selling American dollars on the foreign exchange market to support the yuan exchange rate and shares of Chinese companies. According to a Reuters source, dollar sales were aggressive.

Against the background of the loss of investor interest in Chinese stocks and bonds, the Japanese, Indian, European and American stock markets rose.