China has unveiled new initiatives aimed at supporting index-based investment products in response to challenges facing the stock market amid turbulent economic times.

According to Bloomberg, the government seeks to significantly increase the scale and share of index investments in the financial sector through various efforts, as stated by the China Securities Regulatory Commission (CSRC) on its website on Sunday.

The regulator aims to enhance the role of index funds in asset allocation and provide more convenient options for investing in medium- and long-term funds.

CSRC also intends to attract foreign investment firms to engage in the yuan-denominated A-share market through exchange-traded funds and actively promote the development of stock and bond exchange-traded funds. The regulatory body has also promised to reduce costs associated with index funds and eliminate maker fees.

In recent months, Chinese stocks have been under pressure due to concerns over prolonged economic downturn and threats of tariff increases from the Trump administration. Traders are increasingly skeptical about Beijing's attempts to stimulate the economy and question the effectiveness of measures implemented so far.