Three Chinese state investment entities have vowed to ramp up equity purchases in an effort to “firmly safeguard the stable operation of the capital market”.
Overnight, US President Donald Trump threatened to apply an additional 50 per cent tariff on Chinese goods if Beijing does not drop a set of retaliatory levies that it imposed on the US.
On Tuesday morning, Central Huijin, in an interview with state media, vowed again that it would act as a “stabiliser” in the capital markets, effectively smoothing out abnormal market fluctuations.
“When action is needed, we will act decisively,” an executive said.
On Tuesday morning, the People’s Bank of China said it would support Central Huijin by increasing its purchases of stock-market index funds and would, when necessary, provide sufficient relending support to Central Huijin to safeguard the stable operations of the capital markets. And the National Financial Regulatory Administration also said it would increase the amount of insurance funds that can be invested in the stock market.
