In a coordinated effort to shore up investor confidence, top Chinese brokerages have pledged to help stabilize domestic share prices, the Shanghai bourse announced.
This pledge comes as scores of listed companies unveiled plans to buy back their own stock, a response to the escalating trade war that has sent shockwaves through the local market.
The Shanghai Stock Exchange (SSE) revealed late on Tuesday that it convened a meeting with 10 leading brokerages to emphasize the critical importance of stabilizing markets in the face of external shocks.
The SSE stated that participating firms, including Citic Securities, Orient Securities, and Industrial Securities, expressed optimism about China’s long-term growth prospects and vowed to actively work to steady the market, a clear signal of support for government efforts.
America’s 104% hit on Chinese goods
The United States said that 104% duties on imports from China will take effect shortly after midnight, intensifying trade tensions that have already roiled global markets and smacked Chinese shares, underlining the immediate threat to the Chinese economy.
The brokerage gathering represents an acceleration of efforts by Chinese authorities to try and limit the damage from the trade war.
This follows earlier vows from Central Huijin, the government wealth fund, to increase their stock holdings to provide further market support.
Adding to the effort, more than 100 Chinese listed companies have published announcements regarding share purchases or buybacks, seeking to bolster confidence in a market that has slumped to six-month lows this week, creating further worry for investors.
Construction machinery maker Sanyi Heavy Industry Co stated that it repurchased 5 million shares worth 92.9 million yuan ($12.64 million) through the public market on Tuesday, demonstrating concrete action.
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Similarly, XCMG Construction Machinery announced plans to buy back the company’s shares worth up to 3.6 billion yuan, underscoring the scale of corporate efforts to stabilize share prices.
More than 20 listed companies controlled by the central government also unveiled buyback plans under the guidance of China’s state asset regulator, signaling a unified response from the government and state-owned enterprises.
This group includes prominent oil companies PetroChina and Sinopec, as well as power generators such as China Shenhua Energy Co and GD Power Development, highlighting the broad scope of the buyback initiatives.
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