Two Chinese state investment firms have deployed nearly $9 billion to prop up the stock market, after artificial-intelligence fears triggered a selloff in recent weeks.
China Reform Holdings said Sunday that its unit tapped more than 50 billion yuan, equivalent to $7.38 billion, from the special relending facility and matching funds for share buybacks and stake increases to help stabilize the market.
In a separate disclosure Sunday, China Chengtong Holdings said its subsidiaries purchased nearly 10 billion yuan, or $1.48 billion, of Chinese equity assets.
Both investment firms said they are "firmly optimistic" about the prospects of China's capital market and will continue increasing their stakes in state-owned enterprises and tech names to maintain market stability.
The show of support and pledges come amid a deepening selloff in chip and tech stocks globally as investors grow increasingly unsettled about massive spending on AI. The benchmark Shanghai Composite Index has shed 7.3% so far this month, while the tech-heavy ChiNext Price Index has slumped 21%.
Analysts say the two state investors, part of a group of entities known as the "national team," have signaled a strong intent to establish a market floor and conveyed policymakers' determination to maintain the stability of capital markets.
The Shanghai Composite Index ended 0.85% higher on Monday, rebounding from last week's 5.8% drop. The ChiNext Price Index rose 0.4% after slumping 11% last week.
Write to Sherry Qin at sherry.qin@wsj.com and Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
July 20, 2026 05:51 ET (09:51 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.