State-Owned Giants Step Up to Stabilize Market

In a bold move to counteract the volatility sparked by U.S. President Donald Trump's tariff policies, several of China's state-owned investment holding companies have pledged to increase their share holdings. This initiative aims to restore confidence and stability in the shaken stock market.

Significant Investments Announced

China Reform Holdings Corp. has committed an initial investment of 80 billion yuan ($10.95 billion) towards acquiring shares in state-owned firms, tech companies, and exchange-traded funds (ETFs). Similarly, China Chengtong Holdings Group and China Electronics Technology Group Corporation have unveiled plans to boost their holdings in stocks and ETFs, signaling a united front to safeguard the market's integrity.

Central Huijin Investment Leads the Charge

The wave of announcements follows Central Huijin Investment Ltd.'s vow to escalate its share purchases to "resolutely maintain smooth operation" of the stock market. The People's Bank of China (PBoC) has thrown its weight behind these efforts, affirming its "firm support" for Central Huijin's strategy and promising to provide "ample re-lending support" as needed.