CRHC and China Chengtong inject over $7 billion steadying market
China's stock market just got a lifeline: two big state-owned investors, CRHC and China Chengtong, have poured in more than $7 billion to help steady things after a sharp drop.
The STAR Market Index, which is heavy on tech and semiconductors, lost 25% since early July, wiping out more than 4 trillion yuan in value as global tech stocks took a hit.
CRHC invests over 50 billion yuan
CRHC invested more than 50 billion yuan ($7.38 billion) for stock buybacks and to boost stakes in major state-run companies.
China Chengtong added nearly 10 billion yuan to Chinese equities, and said it intends to continue increasing investments in central SOE stocks, technology companies and exchange-traded funds (ETFs).
China Chengtong said it is "confident in the prospects of China's economy" and "committed to supporting the stable functioning of the country's stock market," while CRHC said it is "optimistic about the long-term outlook for China's capital markets."