China prepares £40bn stimulus for financial sector amid fears over sluggish growth

China prepares £40bn stimulus for financial sector amid fears over sluggish growth

China is planning a stimulus package worth about £40 billion aimed at its financial sector as growth slows. Authorities intend to encourage banks and insurers to increase their holdings in the domestic stock market, hoping the move will boost liquidity and support the economy. The plan reflects concerns over weak domestic demand and a need to stabilise markets.