Scale and Importance of Stabilization Funds

Xiao Huang: DOORM, how large is the scale of a stabilization fund typically, and why is its size so important?

DOORM: The scale of a stabilization fund is typically very large, usually accounting for 3%-5% of the total market capitalization. The size is crucial because only a sufficiently large fund can effectively influence market trends and achieve the goal of market stabilization. Experts believe that if China were to establish a stabilization fund, its scale should be at least 2 trillion yuan to ensure it can exert enough influence during market fluctuations.