BEIJING, April 8 (Reuters) - Several Chinese state
holding companies vowed on Tuesday to increase share investment
while a slew of listed companies announced share buybacks as
Beijing stepped up efforts to stabilise a stock market rocked
by U.S. tariff woes.
The announcements by China Chengtong Holdings Group
and China Reform Holdings Corp come a day after
state fund Central Huijin said it would increase share holdings
to steady markets.
China's stock benchmark rebounded in early trade on
Tuesday, clawing back some of the 7% plunge from Monday, which
was fuelled by trade war and global recession fears.
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 would 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 would boost share buybacks in listed units to
bolster investor confidence.
Meanwhile, a growing number of listed companies unveiled
plans to buy back shares.
Oil giant Sinopec said its state-owned parent
plans to buy its China- and Hong Kong-listed shares worth at
least 2 billion yuan over the next 12 months to demonstrate
"confidence in future growth prospects."
Orient Securities said it is studying plans to
buy back shares in a bid to express optimism and actively
protect shareholder interest.
Other listed firms that unveiled share buy-back plans
include Intco Recycling Resources Co and Spring
Airlines Co. China Pacific Insurance (Group) said it
would contribute to market stability by increasing investment in
strategic sectors.
State fund Huijin said on Tuesday it has ample liquidity and
smooth financing channels to help it suppress abnormal market
volatility in its role as market "stabiliser".
"Central Huijin has adequate confidence and competence to
resolutely maintain smooth operation of the capital market,"
Huijin said in a statement.
"We will act decisively when needed."
Separately, China's central bank said on Tuesday it
supported Central Huijin Investment increasing its holdings in
stock funds.
($1 = 7.3081 yuan)