Chinese state-owned firms on Tuesday announced plans to ramp up share purchases in a bid to stabilize plunging markets, following steep losses triggered by escalating U.S.-China trade tensions.
China Chengtong Holdings Group and China Reform Holdings Corp (Guoxin) said they would increase investments in stocks and ETFs, echoing a similar move by sovereign fund Central Huijin a day earlier. The pledges come after the Shanghai Composite Index slumped 7% on Monday amid fears of a deepening trade war and global recession.
Chengtong expressed confidence in China’s market outlook, committing to support high-quality listed firms. Guoxin plans to invest 80 billion yuan (US$10.95 billion), focusing on tech, state-owned enterprises, and ETFs. Meanwhile, China Electronics Technology Group also vowed to step up share buybacks to help restore investor confidence.
