State-owned insurers and mutual funds are expected to play a pivotal role in the process of stabilizing the stock market.

Beijing is seeing diminishing returns on repeated attempts to reinvigorate the market, as investors worry about harder-to-control economic fundamentals, like weak consumer spending and the prolonged property crunch.

China's share markets hit their peak value before the 2008 global financial crisis and have stayed well below that level since. A lack of gains in share prices, along with falling housing prices, has discouraged Chinese families from spending,