China Chengtong Holdings Group Photo: VCG

China Chengtong Holdings Group,MKsport a capital operation platform of the State-owned Assets Supervision and Administration Commission of the State Council, said on Monday night that its financial subsidiaries have increased their holdings of exchange-traded funds (ETFs) and shares of centrally administered state-owned enterprises (SOEs), to firmly safeguard the stable operation of the capital market. 

The company added that it remains firmly confident in the long-term prospects of China's capital market and will further leverage its role as a state capital operating company to continue making large-scale purchases of shares in centrally administered SOEs and technology innovation-oriented firms, better act as a long-term investor and effectively support the high-quality development of listed companies, according to its official WeChat account.

Also on Monday night, China Reform Holdings Corp offered a matching signal of support. The state-owned investment holding company said in a post on its WeChat account that it is firmly optimistic about the development prospects of China's capital market and is determined to serve as long-term, patient and strategic capital. 

It has increased holdings of central SOE stocks, tech‑innovation shares and ETFs to actively support technological innovation in key areas and contribute to maintaining stable market operation.

The latest action follows a similar pledge earlier on Monday by Central Huijin Investment, another major state investor. Huijin said in a notice that it has recently increased its positions in ETFs and will continue to do so, while vowing to resolutely maintain the stable operation of the capital market.

The statements came as Chinese stocks fell sharply on Monday, with the benchmark Shanghai Composite Index down 7.34 percent at market close. This came after major stock indexes plunged in Asia on Monday as the US administration showed no sign of backing away from its sweeping tariff plans, and investors bet the mounting risk of recession could see the US Federal Reserve cutting rates as early as May, Reuters reported on Monday.

On Monday, Japan's Nikkei 225 index plunged 7.83 percent, while South Korea's KOSPI index fell 5.57 percent.

Global Times