Central Huijin, a unit of China’s US$1.2 trillion wealth fund, buys ETFs to boost stocks
The company says it will make more such investments in the future to ‘resolutely’ maintain the stability of the capital market
Central Huijin Investment, a unit of China’s US$1.2 trillion sovereign wealth fund, bought exchange-traded funds (ETFs) on Monday, intervening in the nation’s stock market that is reeling from the mayhem inflicted by reciprocal tariffs from the US.
The company is “firmly” positive on the outlook of China’s capital markets and fully acknowledges the allocation values of A shares, or the yuan-denominated stocks trading on China’s onshore exchanges, the statement said.
Huijin was not alone in diving into the market. China Chengtong Financial Holdings and Beijing Chengyang Investment, two units under the state asset management company, said they too have been buying ETFs, without divulging details.
The state buying was the first move by Beijing to mitigate the fallout from the US’ full-blown trade war, which has swept across the global markets amid fears of a recession for the global economy.
07:05
World leaders react to Trump’s new tariff blitz as global trade war escalates
State intervention could be frequently seen this year, after policymakers pledged to stabilise the nation’s financial markets in a government work report approved by lawmakers last month.