Global Market: Chinese State-Backed Funds Step in with Fresh Equity Purchases After Market Sell-Off
State-backed buyers deployed about 60 billion yuan in fresh purchases and buybacks as the STAR Market fell roughly 25% from its July 1 peak.
- On Sunday, China Reform Holdings Corp and China Chengtong Holdings Group announced fresh purchases of Chinese equities to stabilize the market following a sharp sell-off.
- The state purchases follow brutal sell-offs, as the tech-heavy STAR Market tumbled more than 20 per cent from record highs, entering a bear market amid global declines in AI-related shares.
- Together, the two state-backed firms deployed about 60 billion yuan, or $8.86 billion, to stem the decline, with CRHC spending more than 50 billion yuan and China Chengtong Holdings Group nearly 10 billion yuan.
- Separately, listed units of China Railway Rolling Stock Corporation and Aluminum Corporation announced plans to increase stakes or buy back shares to bolster market confidence.
- The China Securities Regulatory Commission will convene on Monday with representatives from listed companies, brokerages, and mutual fund firms to discuss further stabilization measures.
18 Articles
18 Articles
(Beijing=Yonhap News) Correspondent Jung Sung-jo = As Chinese authorities struggle to stabilize stock market sentiment, major state-owned enterprises are successively investing in the domestic stock market...
Beijing intensifies market stabilization efforts as state-backed funds
Chinese authorities have significantly escalated their intervention strategies to stabilize the nation's volatile equity markets. In a highly coordinated display of state-backed support, two of the country’s largest sovereign wealth and state-affiliated
The Economic Times
Times of IndiaGlobal Market: Chinese state-backed funds step in with fresh equity purchases after market sell-off
Chinese state-backed investors China Reform Holdings and China Chengtong have announced fresh equity purchases to stabilise markets after a sharp sell-off. The firms deployed billions of yuan to support share buybacks, SOE stocks and ETFs, as Chinas STAR Market Index slumped 25% from its July peak.
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