Per a report by Reuters, China’s central bank cut bank reserves by $140 billion Wednesday to bolster the economy and stabilize plunging stock markets. The move led to a rebound in stock indexes and the yuan, though analysts suggest more policy measures are needed.

What Happened?

Chinese authorities are said to be planning a significant rescue package to stabilize the struggling stock market. Insiders have disclosed that policymakers are looking to create a stabilization fund worth approximately 2 trillion yuan ($278 billion).

The fund will be sourced mainly from the offshore accounts of Chinese state-owned enterprises and is intended to buy shares onshore through the Hong Kong exchange link.

Foreign investors have notably withdrawn from the Chinese equity market, evident in the sharper declines of Chinese stocks on Hong Kong's Hang Seng Index compared to domestic shares…Read More

See Also: Chinese Stocks Rally As Beijing Goes All-In On Financial Support, Squeezes Short Sellers

According to data from Benzinga Pro, Baidu Inc has a 52-week high of $160.88 and a 52-week low of $97.51.