Sunday, August 31, 2025

China Backs A Shares Amid Market Turmoil

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China’s Central Huijin Investment has reinforced its confidence in A shares, even as Asian markets tumbled on Monday. The state-owned firm emphasized its belief in the strong long-term outlook of China’s capital market. It also reaffirmed its commitment to maintaining market stability by actively increasing its holdings.

In a notice published on its official website, the company stated that it had recently added more exchange-traded funds (ETFs). It also announced plans to continue purchasing these financial instruments. Officials said this move reflects their confidence in A shares and their determination to support market operations.

Meanwhile, authoritative sources told the Securities Times that Central Huijin was conducting market stabilization efforts. These actions aimed to ease investor fears following a sharp downturn in global stock indices.

Chinese stocks saw a steep drop, with the Shanghai Composite Index falling by 7.34 percent at the close of trading. The sudden drop coincided with worsening global sentiment. Investors grew nervous after the US administration reaffirmed its aggressive stance on tariffs.

At the same time, fears of a looming recession increased. Many market participants now expect the US Federal Reserve to cut interest rates by May. This added to the sense of uncertainty and triggered widespread sell-offs across the region.

Japan’s Nikkei 225 Index plunged 7.83 percent, while South Korea’s KOSPI Index dropped 5.57 percent. Analysts linked these moves to rising trade tensions and volatile investor sentiment.

Despite the chaos, China’s Central Huijin continues to focus on A shares. The firm’s strategy highlights its commitment to protecting investor confidence during turbulent times. As global volatility grows, Beijing appears determined to support its domestic market with bold action.

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