New govt measures to boost confidence

The People's Bank of China will provide ample liquidity to help stabilize the stock market. It will work with China Securities Finance Corp Ltd, the State-owned margin lender, to obtain liquidity through loans and bonds. The PBOC says it will do whatever it can to prevent systemic risks.

The China Insurance Regulatory Commission has increased the limits for insurers to invest in blue-chip stocks from 5 percent to 10 percent of their total assets. Qualified insurers can also increase the ratio of their equity assets from 30 percent to 40 percent of their total assets.

The State-owned Assets Supervision and Administration Commission, the State assets regulator, has urged the 112 central State-owned enterprises to buy more shares in their companies.