SHANGHAI: The National Development and Reform Commission (NDRC) is likely to inject up to 400 billion yuan to prop up distressed equity markets and buoy market confidence, according to a media report.

A proposal made by NDRC, to be discussed at the Central Economic Work Conference in early December, will see the central government pump 300 to 400 billion yuan into the capital market. This accounts for nearly 10 percent of the market capitalization on China's two bourses and is seen as a move to lift sagging investor confidence, an anonymous source, involved in drafting the plan, was quoted by The Economic Observer as saying.

However, analysts expressed their doubts on the effectiveness of the injection plan as the market is still reeling from global economic woes and the lackluster performance of listed companies.