Chinese state holding firms ramped up market support on Tuesday as Beijing moved to stabilize stocks shaken by U.S. tariffs. China Chengtong Holdings and China Reform Holdings (Guoxin) pledged to increase share investments, echoing Central Huijin’s earlier vow to steady the market.
China’s main stock index rebounded after plunging 7% on Monday amid escalating trade tensions. Washington recently imposed 34% tariffs on Chinese imports, prompting an equal response from Beijing.
Chengtong said it would boost stock and ETF holdings to ensure stability, while Guoxin committed 80 billion yuan (~$11B) to tech and state firm shares via a relending program.
China Electronics Technology Group also pledged more buybacks, and numerous listed firms followed suit. Sinopec announced a 2 billion yuan share repurchase over 12 months. Orient Securities and others, including Intco Recycling and Spring Airlines, unveiled similar plans.
State fund Huijin reaffirmed its role as market “stabilizer,” saying it has ample liquidity and will act decisively if needed. China’s central bank voiced support for Huijin’s increased investment in stock funds.