China state investors deploy over 50 billion yuan to support stocks

China’s state-backed investors have stepped up support for domestic equities after a recent selloff, while the China Securities Regulatory Commission has followed through with meetings aimed at reinforcing market confidence. China Reform Holdings said its unit tapped more than 50 billion yuan, or about $7.38 billion, from a special relending facility and matching funds for share buybacks and stake increases to help stabilize the market. Together with China Chengtong’s nearly 10 billion yuan commitment for purchases of central SOEs, technology stocks and ETFs, the broader intervention totals nearly $9 billion. The CSRC said officials met representatives of listed companies, securities firms, fund institutions, experts and academics on Monday and Tuesday to gather suggestions on promoting stable and healthy capital-market development. The regulator pledged to respond proactively to market concerns, bolster stability, strengthen supervision and improve investor protection. Its chairman, Wu Qing, also chaired a similar meeting with investors on Monday and vowed to prevent risks in the capital market and maintain stable market operations. The latest push came as Chinese stocks rebounded on Monday and Tuesday after a two-week rout erased 10 trillion yuan, or about $1.48 trillion, from market capitalization. State-backed investors, including major insurers, also pledged to increase investments, while listed companies such as Zhejiang Huayou Cobalt and Weichai Power proposed share buybacks or stake increases by controlling shareholders to support sentiment.