Beijing steps in to stem China’s stock market decline with US$8.9b in state purchases

The CSRC is set to convene on Monday as state-backed firms buy 60 billion yuan of stocks amid market turbulence Two state-backed firms bought Chinese stocks for about 60 billion yuan (US$8.86 billion) to stem a decline in equities, in a clear sign of government intervention amid market turbulence. China Reform Holdings spent more than 50 billion yuan buying mainland-listed stocks, it said in a statement on Sunday night, adding that it would continue to increase holdings of companies owned by the central government. Meanwhile, China Chengtong Holdings Group said in a separate statement that it bought nearly 10 billion yuan of stocks recently, through two units, and would continue to buy both stocks and exchange-traded funds tied to central government-owned enterprises and technology companies. Separately, a flurry of state-backed shareholders also announced plans to either increase their stake in their listed subsidiaries or buy back their shares, which included the listed units China Railway Rolling Stock Corporation and Aluminum Corporation of China, according to separate exchange statements.

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