In a decisive response to global financial turbulence sparked by mounting U.S. tariffs, China has rolled out a powerful series of coordinated measures aimed at stabilizing its capital markets and restoring investor confidence.
On Tuesday, Chinese stock markets bounced back strongly after sharp losses, buoyed by state-driven interventions and policy support. The Shanghai Composite Index rose 1.58%, the Shenzhen Component Index gained 0.64%, and the tech-heavy ChiNext Index surged 1.83%, signaling a renewed sense of confidence.
At the forefront of the response is Central Huijin Investment Ltd., a major state-owned investor, which announced expanded holdings in exchange-traded funds with a firm commitment to continue bolstering the market. The People’s Bank of China followed with a pledge of liquidity support via re-lending facilities to reinforce Huijin’s efforts.
“China is signaling loud and clear that it will not allow external shocks to derail its financial stability,” said Wang Qing, chief macro analyst at Golden Credit Rating.
Other state-backed giants swiftly joined in. Investment arms like China Chengtong Holdings and China Reform Holdings unveiled buyback strategies, while seven subsidiaries of China Merchants Group committed to increased market activity to calm volatility.
Simultaneously, China’s central state-owned enterprises (SOEs) are stepping up. The State-owned Assets Supervision and Administration Commission declared full support for expanded share purchases and repurchase programs. Major players such as China National Petroleum Corporation and China Petroleum & Chemical Corporation revealed plans to pour billions into A-share and H-share buybacks over the next year.
Tech, energy, and green transition-focused SOEs also followed suit. China Electronics Technology Group completed over 2 billion yuan in share repurchases, while China Huaneng and China National Coal Group deployed strategic capital injections and green-aligned investment initiatives.
Further strengthening the financial safety net, the National Financial Regulatory Administration increased the cap on equity investments by insurance funds, encouraging long-term placements in strategic emerging sectors. In response, industry leaders like China Life Insurance and China Pacific Insurance announced plans to boost equity exposure, reinforcing China’s push for “new quality productive forces.”
The National Council for Social Security Fund, steward of the country’s retirement assets, echoed this sentiment, revealing increased equity positions and pledging further domestic stock investments in the near future.
The sweeping measures send an unmistakable message: Beijing is prepared to defend its markets with full force. Through strategic coordination of capital, policy, and institutional strength, China aims not only to weather the global trade storm but to transform adversity into a catalyst for long-term resilience and reform.
