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China moves swiftly to stabilize markets amid global financial turbulence

2025-04-08 21:06
来源:Xinhua

  This photo taken on Oct. 8, 2024 shows the Shenzhen Stock Exchange in Shenzhen, south China's Guangdong Province. (Xinhua/Liang Xu)

  BEIJING, April 8 (Xinhua) -- In the face of global financial turbulence, China has unveiled a series of swift and intensive measures aimed at stabilizing the capital markets and restoring investor confidence.

  Affected by sweeping global plunges triggered by U.S. tariffs, major Chinese equity indices -- including the benchmark Shanghai Composite Index, the Shenzhen Component Index, and the ChiNext Index -- suffered notable losses on Monday.

  In response to the downturn, some state-owned capital operation firms moved quickly to increase their holdings of domestic equities, voicing strong confidence in the long-term outlook of the country's capital markets. The People's Bank of China, or the central bank, also announced liquidity support through re-lending facilities on Tuesday.

  Central Huijin Investment Ltd., a Chinese state-owned investment company, said it had once again increased its holdings of exchange-traded funds and would continue to do so in the future to "resolutely safeguard" the stable operation of the capital market.

  As a controlling or participating shareholder in over 20 financial institutions, Central Huijin reaffirmed its pivotal role in stabilizing the capital markets in a statement Tuesday. Often likened to a "stabilization fund," the company has been instrumental in bolstering market stability and resilience since 2008.

  Following the statement of Central Huijin, the central bank pledged to firmly support the company in increasing its holding of stock index funds and will provide sufficient re-lending support when necessary.

  Apart from Central Huijin, multiple state-owned investment firms also increased stock holdings or unveiled plans to accelerate share buybacks, including China Chengtong Holdings Group Ltd., China Reform Holdings Corporation Ltd., and seven listed firms under the China Merchants Group.

  Moreover, the National Financial Regulatory Administration on Tuesday announced measures to raise the cap on equity investments by insurance funds, with greater support for equity investments in strategic emerging industries and fostering new quality productive forces.

  Analysts believe the coordinated moves sent a clear signal about China's resolve to support the capital markets.

  In a time of heightened uncertainty in the global trade environment and dramatic fluctuations in international financial markets, the timely and decisive action of China's state capital will effectively guide market expectations and mitigate the impact of external shocks, said Wang Qing, chief macro analyst at Golden Credit Rating.

  Financial institutions expressed optimism about the future of the capital markets.

  Central Huijin highlighted the steady progress of China's high-quality development, the dynamic rise of new quality productive forces, and the increasingly solid foundation for sustained economic recovery. These factors provide robust fundamental support for the steady and healthy growth of the capital markets.

  With more firms representing new quality productive forces and technological innovation going public, the allure of A-share core assets has been enhanced, and the overall valuations currently stand at relatively low historical levels, the company said.

  The company vowed to ramp up investments to give full play its role of patient, long-term capital.

作者: 编辑:薛冠群

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