Latest news with #Huijin
Yahoo
08-04-2025
- Business
- Yahoo
China state firms vow to boost share purchases to calm markets
BEIJING (Reuters) -Several Chinese state holding companies vowed on Tuesday to increase share investment while a slew of listed companies announced share buybacks as Beijing stepped up efforts to stabilise a stock market rocked by U.S. tariff woes. The announcements by China Chengtong Holdings Group and China Reform Holdings Corp come a day after state fund Central Huijin said it would increase share holdings to steady markets. China's stock benchmark rebounded in early trade on Tuesday, clawing back some of the 7% plunge from Monday, which was fuelled by trade war and global recession fears. Washington last week imposed extra tariffs of 34% on China, which then fired back with its own 34% levies on U.S. imports. Chengtong said its investment units would increase holdings in stocks and exchange-traded funds (ETFs) to safeguard market stability. "We are firmly optimistic toward the growth prospects of China's capital markets," the state investment firm said in a statement, vowing to support high-quality growth of Chinese listed companies. China Reform Holdings Corp, also known as Guoxin, said in a separate statement that an investment unit will increase holdings in tech companies, state firms and ETFs, tapping a relending scheme for share buybacks. Initial investment will be 80 billion yuan ($10.95 billion). Another state holding company, China Electronics Technology Group, said it would boost share buybacks in listed units to bolster investor confidence. Meanwhile, a growing number of listed companies unveiled plans to buy back shares. Oil giant Sinopec said its state-owned parent plans to buy its China- and Hong Kong-listed shares worth at least 2 billion yuan over the next 12 months to demonstrate "confidence in future growth prospects." Orient Securities said it is studying plans to buy back shares in a bid to express optimism and actively protect shareholder interest. Other listed firms that unveiled share buy-back plans include Intco Recycling Resources Co and Spring Airlines Co. China Pacific Insurance (Group) said it would contribute to market stability by increasing investment in strategic sectors. State fund Huijin said on Tuesday it has ample liquidity and smooth financing channels to help it suppress abnormal market volatility in its role as market "stabiliser". "Central Huijin has adequate confidence and competence to resolutely maintain smooth operation of the capital market," Huijin said in a statement. "We will act decisively when needed." Separately, China's central bank said on Tuesday it supported Central Huijin Investment increasing its holdings in stock funds. ($1 = 7.3081 yuan)
Yahoo
07-04-2025
- Business
- Yahoo
China sovereign fund steps in to support stocks plunging on trade war
By Samuel Shen and Tom Westbrook SHANGHAI (Reuters) -China intervened on Monday to support domestic stocks plunging on U.S. tariff woes, with a sovereign wealth fund increasing its holdings in equities and saying it would defend market stability. Central Huijin Investment, a unit of China Investment Corp, said in statement it has added China-listed shares via exchange-traded funds and will continue to increase holdings to "safeguard the smooth operation of the capital market." The Shanghai Composite Index lost 7% on Monday in its worst day in five years, reeling after the U.S. imposed extra tariffs of 34% on China last week which then fired back with its own 34% levies. Investors dumped shares across the board, worried about the prospect of an increasingly vicious trade war and a global recession. But Huijin's statement helped Chinese stocks find a floor with the market recovering from earlier losses of as much as 9%. They have lost 7.6% since Trump's announcement, a much milder decline than the 13% tumble for Japan's Nikkei index. Huijin said it is "firmly optimistic about the development prospects of China's capital market and fully recognizes the current investment value of A-shares." Wen Hao, a stock trader and executive at quant service provider Yingzhiliang Hangzhou Technology, said the market has limited room to fall given the support of the state fund and other likely steps such as monetary easing and measures to spur consumer spending. But William Xin, chairman of Spring Mountain Pu Jiang Investment Management, said such support would not be enough to offset the impact from a widening trade war, in which "companies are struggling to place orders, set prices, and retain customers." "Hunting for bargains now is like catching a falling knife, so I would rather hold cash until there's a bit more stability," he said. Huijin is one of several state-backed "National Team" investors tasked with stabilising the market in times of turbulence. Others include the China Securities Finance Corp and investment vehicles controlled by China's foreign exchange regulator. Huijin stepped in with stock purchases via ETFs during a market crash in the spring of 2024. It had ETF holdings worth 1 trillion yuan ($137 billion) as of the end of last year, according to Guosen Securities. Harvest CSI 300 ETF, ChinaAMC CSI 300 ETF and E Fund SSE 50 ETF - all ETFs known to be favoured by Huijin - saw trading volumes spike to their highest in a year on Monday. ($1 = 7.3108 Chinese yuan)
Zawya
07-04-2025
- Business
- Zawya
China sovereign fund steps in to support stocks plunging on trade war
SHANGHAI - China intervened on Monday to support domestic stocks plunging on U.S. tariff woes, with a sovereign wealth fund increasing its holdings in equities and saying it would defend market stability. Central Huijin Investment, a unit of China Investment Corp, said in statement it has added China-listed shares via exchange-traded funds and will continue to increase holdings to "safeguard the smooth operation of the capital market." The Shanghai Composite Index lost 7% on Monday in its worst day in five years, reeling after the U.S. imposed extra tariffs of 34% on China last week which then fired back with its own 34% levies. Investors dumped shares across the board, worried about the prospect of an increasingly vicious trade war and a global recession. But Huijin's statement helped Chinese stocks find a floor with the market recovering from earlier losses of as much as 9%. They have lost 7.6% since Trump's announcement, a much milder decline than the 13% tumble for Japan's Nikkei index. Huijin said it is "firmly optimistic about the development prospects of China's capital market and fully recognizes the current investment value of A-shares." Wen Hao, a stock trader and executive at quant service provider Yingzhiliang Hangzhou Technology, said the market has limited room to fall given the support of the state fund and other likely steps such as monetary easing and measures to spur consumer spending. But William Xin, chairman of Spring Mountain Pu Jiang Investment Management, said such support would not be enough to offset the impact from a widening trade war, in which "companies are struggling to place orders, set prices, and retain customers." "Hunting for bargains now is like catching a falling knife, so I would rather hold cash until there's a bit more stability," he said. Huijin is one of several state-backed "National Team" investors tasked with stabilising the market in times of turbulence. Others include the China Securities Finance Corp and investment vehicles controlled by China's foreign exchange regulator. Huijin stepped in with stock purchases via ETFs during a market crash in the spring of 2024. It had ETF holdings worth 1 trillion yuan ($137 billion) as of the end of last year, according to Guosen Securities. Harvest CSI 300 ETF, ChinaAMC CSI 300 ETF and E Fund SSE 50 ETF - all ETFs known to be favoured by Huijin - saw trading volumes spike to their highest in a year on Monday. ($1 = 7.3108 Chinese yuan)
Khaleej Times
07-04-2025
- Business
- Khaleej Times
China sovereign fund steps in to support stocks plunging on trade war
China intervened on Monday to support domestic stocks plunging on U.S. tariff woes, with a sovereign wealth fund increasing its holdings in equities and saying it would defend market stability. Central Huijin Investment, a unit of China Investment Corp, said in statement it has added China-listed shares via exchange-traded funds and will continue to increase holdings to "safeguard the smooth operation of the capital market." The Shanghai Composite Index lost 7% on Monday in its worst day in five years, reeling after the U.S. imposed extra tariffs of 34% on China last week which then fired back with its own 34% levies. Investors dumped shares across the board, worried about the prospect of an increasingly vicious trade war and a global recession. But Huijin's statement helped Chinese stocks find a floor with the market recovering from earlier losses of as much as 9%. They have lost 7.6% since Trump's announcement, a much milder decline than the 13% tumble for Japan's Nikkei index. Huijin said it is "firmly optimistic about the development prospects of China's capital market and fully recognizes the current investment value of A-shares." Wen Hao, a stock trader and executive at quant service provider Yingzhiliang Hangzhou Technology, said the market has limited room to fall given the support of the state fund and other likely steps such as monetary easing and measures to spur consumer spending. But William Xin, chairman of Spring Mountain Pu Jiang Investment Management, said such support would not be enough to offset the impact from a widening trade war, in which "companies are struggling to place orders, set prices, and retain customers." "Hunting for bargains now is like catching a falling knife, so I would rather hold cash until there's a bit more stability," he said. Huijin is one of several state-backed "National Team" investors tasked with stabilising the market in times of turbulence. Others include the China Securities Finance Corp and investment vehicles controlled by China's foreign exchange regulator. Huijin stepped in with stock purchases via ETFs during a market crash in the spring of 2024. It had ETF holdings worth 1 trillion yuan ($137 billion) as of the end of last year, according to Guosen Securities. Harvest CSI 300 ETF, ChinaAMC CSI 300 ETF and E Fund SSE 50 ETF - all ETFs known to be favoured by Huijin - saw trading volumes spike to their highest in a year on Monday.
Yahoo
07-04-2025
- Business
- Yahoo
China sovereign fund Huijin buying domestic stocks as market slumps
SHANGHAI (Reuters) - China's sovereign fund Central Huijin Investment said on Monday it is increasing holdings in China stocks and will defend market stability - comments that follow a slide in local shares amid fears a widening trade war will unleash a deep recession. Huijin said it is "firmly optimistic about the development prospects of China's capital market and fully recognizes the current investment value of A-shares." The state fund has added China-listed shares via exchange-traded funds (ETFs), and will continue to increase holdings in the future to "safeguard the smooth operation of the capital market," Huijin said in a statement. The Shanghai Composite Index slumped 7% on Monday in its worst day in five years as investors dumped shares across the board after the U.S. imposed more tariffs on China which then fired back with its own levies. Asian markets were heavily sold off on Monday, adding to losses last week as U.S. President Donald Trump showed no sign of backing away from his sweeping tariff plans that threaten to fuel inflation, disrupt global supply chains and trigger a global economic slowdown.
