China’s Financial Giants Unite to Stabilize Markets Amid U.S. Tariff Threats
As tensions escalate over new U.S. tariff threats, China’s major state-owned enterprises and financial institutions are stepping up efforts to stabilize the country’s capital markets. On Tuesday, the Chinese Ministry of Commerce denounced the U.S. plans to impose an additional 50 percent tariff on Chinese goods, urging a resolution through dialogue based on mutual respect.
In response to recent market volatility, a coordinated effort is underway by key financial players. Four of China’s largest state-owned investment companies—Central Huijin Investment Ltd. (Central Huijin), China Chengtong Holdings Group, China Reform Holdings Corporation (China Guoxin), and China Electronics Technology Group Corporation (CETC)—have announced significant measures to maintain smooth market operations.
Central Huijin, often seen as a national stabilizing force in China’s capital market, pledged to actively curb abnormal market fluctuations. The company announced plans to increase its holdings of Exchange-Traded Funds (ETFs) across various market sectors, emphasizing a greater scale of investment and a balanced allocation strategy.
The People’s Bank of China, the nation’s central bank, expressed strong support for these initiatives. On Tuesday, it committed to providing sufficient re-lending support when necessary, reinforcing its dedication to ensuring market stability.
Financial experts view these moves as the beginning of more sustained and powerful interventions. Tian Xuan, dean of the National Institute of Financial Research at Tsinghua University, suggested that Central Huijin is likely to take stronger and continuous actions to restore investor confidence.
Other key state-owned enterprises are also joining the effort:
China Chengtong Holdings Group announced it will significantly increase its holdings in central state-owned enterprise stocks and technology innovation companies, expressing strong belief in the long-term growth potential of China’s capital market.
China Reform Holdings Corporation (China Guoxin) committed to boosting market participation through a special re-lending program, starting with an initial injection of 80 billion yuan (approximately $10.95 billion).
CETC has completed stock buybacks exceeding 2 billion yuan (around $273.65 million) across its listed subsidiaries.
Regulatory bodies are also providing support. The National Financial Regulatory Administration announced plans to raise the proportion of insurance funds allowed in the stock market, including increasing the cap on equity asset allocations. These measures aim to bring more institutional capital into the market and enhance overall resilience.
Adding to the positive momentum, seven listed companies under the China Merchants Group revealed plans to accelerate their stock buyback programs. Furthermore, China Huaneng Group Co., Ltd. announced support for its controlled listed companies to seize opportunities and accelerate development, particularly in green transformation efforts. An affiliate company plans to increase its share holdings by no less than 500 million yuan (about $68.2 million).
Together, these actions send a clear message: China is firmly committed to supporting its capital markets. Through sustained investments, supportive policies, and coordinated actions by state-backed institutions, the aim is to guide the market toward long-term stability and healthy development.
