BEIJING, April 8 (Reuters) - Several Chinese state
holding companies on Tuesday vowed to increase share investment
as Beijing steps up efforts to stabilize a plunging stock market
on U.S. tariff woes.
The announcements by China Chengtong Holdings Group
and China Reform Holdings Corp came after Chinese
state fund Central Huijin said on the previous day it would
increase share holdings to foster stability in markets.
China's stock benchmark dived 7% on Monday amid
investor worries about the risk of a damaging trade war and a
global recession.
Washington last week imposed extra tariffs of 34% on China,
which then fired back with its own 34% levies on U.S. imports.
Chengtong said its investment units will 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 will boost share buybacks in listed units to
bolster investor confidence.
($1 = 7.3081 yuan)