BEIJING, April 8 (Reuters): Chinese state holding companies vowed on Tuesday to increase share investment while a slew of listed firms announced share buybacks as Beijing stepped up efforts to stabilise a stock market rocked by US tariff woes.
The announcements by companies including 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 market rebounded on Tuesday, clawing back some of Monday's 7 per cent slump, which was fuelled by trade war and global recession fears. Washington last week imposed extra tariffs of 34 per cent on China, which then fired back with its own 34 per cent levies on US imports.
China's retail dominated stock market "is vulnerable to irrational pull-backs when hit by unexpected, negative news," China International Capital Corp (CICC) said.
Investment by Huijin and other state investors "will not only provide direct liquidity support and break the vicious cycle, but also send a signal to calm market nerves."
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.
