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China's state-owned firms pledge to increase share purchases in order to stabilize the market

On Tuesday, several Chinese state-owned companies pledged to increase their share investments as Beijing intensifies efforts to stabilize the stock market that has been soaring due to U.S. trade tariff woes.

China Chengtong Holdings Group, and China Reform Holdings Corp made their announcements after Chinese state fund Central Huijin announced the day before that it would increase its shareholdings in order to promote stability on the markets.

China's benchmark stock index fell 7% on Sunday amid investor concerns about the possibility of a trade war that could cause damage and a global economic recession.

Washington imposed tariffs of 34% extra on China last week, and China responded with 34% additional levies against U.S. imports.

Chengtong's investment units are increasing their holdings of stocks and exchange-traded funds (ETFs), to ensure market stability.

The state investment firm stated in a press release that it was "firmly optimistic" about the growth prospects for China's capital market. It also pledged to support the high-quality growth among Chinese listed companies.

China Reform Holdings Corp., or Guoxin as it is also known, announced in a separate press release that its investment unit would increase holdings of tech companies, ETFs and state-owned firms, utilizing a refinancing scheme to buy back shares. The initial investment will be 80 billion Yuan ($10.95billion).

China Electronics Technology Group is another state-owned holding company that has announced it will increase share buybacks of listed units in order to boost investor confidence.

(source: Reuters)