China’s state holding companies have vowed to increase share investments as the country steps up efforts to stabilize its stock market. The announcements come after US tariffs were imposed on Chinese goods, fueling fears of a global recession.
Chinese state fund Central Huijin said it would boost share holdings to steady markets. On Tuesday, several listed firms, including China Chengtong Holdings Group and China Reform Holdings Corp, announced share buybacks. These moves aim to calm market nerves and demonstrate confidence in future growth prospects.
Regulators have encouraged companies to increase stock holdings as a way to stabilize the market. China’s state-owned asset regulator said it would guide state-owned companies to contribute to market stability. The country’s financial watchdog also unveiled plans to raise stock investment limits for insurers.
The pledge from state firms comes as China’s retail-dominated stock market faces vulnerability to irrational pullbacks due to negative news. Investment by Huijin and other state investors is seen as providing direct liquidity support and breaking the vicious cycle of market volatility. The state investment firm, China Chengtong, said it would increase holdings in stocks and ETFs to safeguard market stability.
Several listed firms have unveiled share buyback plans, including oil giant Sinopec and Spring Airlines Co, in an effort to boost investor confidence. These moves are encouraged by regulators, who aim to stabilize the market and promote high-quality growth of Chinese listed companies.
Source: https://www.reuters.com/markets/asia/china-state-firms-vow-boost-share-purchases-stabilize-plunging-market-2025-04-08