Global Market: Chinese state-backed funds step in with fresh equity purchases after market sell-off

Chinese state-owned investment firms China Reform Holdings Corp (CRHC) and China Chengtong Holdings Group have announced fresh purchases of domestic equities following a sharp sell-off in the country's stock market, in a move aimed at restoring investor confidence, Reuters reported.

CRHC said entities under its investment arm have deployed more than 50 billion yuan ($7.38 billion) through a combination of special relending facilities and matching funds to support share buybacks and increase stakes in listed companies, according to a statement cited by Reuters.

The state-owned capital operator said it remains optimistic about the long-term outlook for China's capital markets and plans to continue using the relending programme alongside its own funds to raise holdings in shares of centrally administered state-owned enterprises.


Separately, China Chengtong Holdings Group said it has purchased nearly 10 billion yuan worth of Chinese equities and intends to continue increasing investments in central SOE stocks, technology companies and exchange-traded funds (ETFs), Reuters reported.

According to Reuters, the company said it remains confident in the prospects of China's economy and capital markets and is committed to supporting the stable functioning of the country's stock market.

The announcements come after Chinese equities suffered steep losses last week as a global retreat from AI-related stocks triggered broad selling across technology-heavy markets.

China's STAR Market Index, which includes many of the country's leading semiconductor companies, has fallen about 25% from its July 1 peak, erasing more than 4 trillion yuan in market value.

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