Chinese retail investors are pouring money into the stock market as part of a patriotic effort to support their country’s economy. The surge in investor interest is driven by concerns over the US-China trade war, which has intensified since Donald Trump announced “reciprocal tariffs” on April 2.
State-backed institutional investors and private individuals alike have joined forces to defend the market, with many citing a desire to show solidarity with Beijing rather than making a profit. The patriotic fervour is unusual among retail investors, who are typically known for their short-term focus, but authorities welcome the shift as it helps counter the panic caused by the trade war.
Since April 4, China’s share markets have received $45 billion in net retail inflows, with buyers focusing on sectors benefiting from China’s national agenda, such as defence, consumer goods, and semiconductors. The influx of funds has helped stabilize capital markets and lifted the stock market 8% from its seven-month lows.
Chinese Premier Li Qiang has urged government officials to strengthen efforts to steady the stock market, while top Chinese brokerages have pledged to buy more shares to stabilize prices. Investors say their goal is to support their country rather than make money, with some even going so far as to pledge not to sell their stocks or boycott American brands.
The patriotic bids are reflecting nationalistic pride and self-sufficiency targets set by Beijing. Consumer and chipmaking shares have risen since Trump’s “Liberation Day”, while tourism and agriculture-related shares have recovered quickly. Exchange-traded funds have also received significant inflows, pushing the total size of the segment past 4 trillion yuan for the first time.
Chinese investors are taking a bold stance in the face of the trade war, with some even investing their entire portfolios in Chinese stocks. The surge in patriotism is seen as a welcome change by authorities, who hope it will help stabilize the market and counter the impact of the trade conflict.
Source: https://www.reuters.com/business/finance/for-our-country-chinas-patriots-are-buying-dip-2025-04-22