BEIJING , 7 April 2025 – China’s sovereign wealth fund Central Huijin Investment announced on Monday that it will increase its investment in Chinese equities to support market stability following a sharp collapse in stock indices, Reuters reports.
In its official press release, the fund’s management stated that it is “firmly optimistic about the prospects for the Chinese stock market” and “fully recognises the ongoing investment value of Class A shares”. This is a type of share that typically gives investors priority rights in terms of dividends, voting or asset distributions.
Huijin has already made domestic purchases of securities through exchange-traded funds (ETFs) and has confirmed its intention to continue expanding its portfolio to “ensure the smooth operation of the capital market”.
The statement came amid a dramatic drop in China’s Shanghai Composite index, which fell 7% on Monday, its worst performance in five years. The collapse was caused by panic selling by investors following the escalation of the US-China trade war. Washington imposed new duties on imports from China, to which Beijing responded with similar measures of 34%.
Asian markets in general suffered serious losses, continuing last week’s negative trend. European stock exchanges also opened lower, reflecting global fears of an economic downturn, rising inflation and disruptions in international supply chains. Nevertheless, China is determined to support its markets with government intervention.
