Stock crisis buffer fund proposed

Market regulatory officials are pushing for provisions to be included in a Securities Law amendment to create a national financial stabilization fund that would legitimize and enable government intervention during turmoil in the securities market.

The effort comes against the background of the recent massive sell-off of shares that slashed the benchmark stock index by 30 percent from the mid-June peak. The sell-off ended only after the central government intervened.

On Sunday, the China Securities Regulatory Commission instructed brokerages to be more effective in enforcing the rules that require the use of real names and national ID numbers.