Top Chinese brokerages and dozens of listed companies have pledged to support the domestic stock market as it faces mounting pressure from an escalating trade war, the Shanghai Stock Exchange confirmed. In a coordinated move, these firms are taking steps to restore investor confidence and mitigate the impact of external economic shocks.
On Tuesday evening, the Shanghai Stock Exchange announced that it had convened a meeting with 10 prominent brokerages, including Citic Securities, Orient Securities, and Industrial Securities, to discuss strategies for stabilizing the market. During the meeting, participants expressed confidence in China’s long-term economic prospects and reaffirmed their commitment to supporting market stability in light of increasing external tensions.
This announcement comes as the United States revealed that it would soon impose 104% tariffs on Chinese imports, set to take effect just after midnight. The decision to escalate the trade dispute has sent shockwaves through global markets, intensifying the pressure on Chinese stocks that have already faced significant declines.
The brokerage meeting marks a significant step in the Chinese government’s efforts to contain the damage from the ongoing trade war. In recent days, state-backed investors, including Central Huijin, have pledged to increase their stock holdings in an effort to stabilize the market and restore confidence among investors.
In a related move, over 100 Chinese listed companies have revealed plans to buy back shares in a bid to bolster the sagging market. The announcements come after the Shanghai Composite Index slumped to its lowest point in six months earlier this week.
Among those leading the charge, construction machinery manufacturer Sanyi Heavy Industry Co. reported buying back 5 million shares worth 92.9 million yuan ($12.64 million) on Tuesday. Similarly, XCMG Construction Machinery unveiled plans to repurchase up to 3.6 billion yuan in shares.
Additionally, more than 20 companies with central government backing have disclosed buyback plans, including major players such as PetroChina, Sinopec, China Shenhua Energy, and GD Power Development. These moves are part of a broader initiative, coordinated under the guidance of China’s state asset regulator, to ensure stability in the domestic stock market amid ongoing trade uncertainties.
Related topics:
Trump’s New Tariffs Escalate Global Trade War
