A Chinese policy think tank has called for Beijing to issue 2 trillion yuan ($280 billion) of special treasury bonds to set up a stock market stabilisation fund, the 21st Century Business Herald reported on Wednesday.

China’s 200 million-strong army of retail investors was supposed to help the market turn a corner. Instead, it has become a source of weakness.

China should issue 2 trillion yuan (US$280 billion) in special bonds to establish a stock market stabilisation fund, a government-affiliated research institute proposed on Tuesday, amid broader efforts by authorities to bolster the economy.

Xi Jinping wants a strong stock market and is doubling down on his efforts to build one. Whether the Chinese leader is a true convert to the religion of shareholder value, or simply wants to boost some $11 trillion of equities to stimulate the world's second-largest economy,