China is considering creating a state-backed stabilization fund to shore up confidence in its equity markets, Bloomberg News reported on Thursday.

Financial regulators, including the China Securities Regulatory Commission (CSRC), recently submitted a preliminary plan to the country’s top leadership after at least two rounds of consultation with industry participants over several months, the report said citing people familiar with the matter.

The plan calls for the fund to have access to total capital of up to hundreds of billions of yuan, the report said, adding that implementation details have not been finalized and there could be a chance the proposal will be scrapped.

China stocks close up after state fund boosts stakes in banks

This move comes as China’s “Big Four” state banks said late on Wednesday that their controlling state parent shareholder Central Huijin Investment bought their Shanghai-traded shares, and plans to further increase its holdings in the next six months.