
stock market (Photo:VCG)
A number of financial associations and companies continued to voice their support for the Chinese capital market on Tuesday, following a symposium held by the China Securities Regulatory Commission (CSRC) that signaled its commitment to market stability amid recent volatility.
Following the announcement of large-scale shareholding increases by two central state-owned enterprises (SOEs) on the evening of Sunday, 15 central SOE-controlled listed companies have issued announcements as of Tuesday, sending positive signals to the market through measures such as shareholder increases, share buybacks, and dividend distributions, according to the Weibo account of the State-Owned Assets Supervision and Administration Commission.
A total of seven listed firms of central SOEs, including China Three Gorges Renewables (Group) Co, Aluminum Corporation of China Limited, and rolling stock manufacturer CRRC Corporation Limited, have pledged share increases in the range of 3.85 billion yuan to 7.55 billion yuan, the post showed.
Asset Management Association of Shanghai, together with its member institutions including bank wealth management subsidiaries, insurance asset management companies, trust firms, securities asset management firms, public funds, private funds, and asset management service providers, said in a statement on the association's official WeChat account on Tuesday that they firmly believe in the promising prospects of China's capital market and are fully committed to serving the national strategic layout.
It said it will continue to organize its member institutions to practice the principles of "rational investment, value investment, and long-term investment" in the capital market, as they are determined to act as discoverers of value in China's capital market, stabilizers for maintaining market stability, and the main force in serving the real economy, read the statement.
The association vowed to guide its members and enhance their capabilities in serving the real economy, technological innovation, and household wealth management. Through high-quality development of Shanghai's asset management industry, it aims to promote the high-quality development of China's capital market.
Taiping Asset Management Co, a major insurance funds manager in China, stated that the company has always maintained confidence in the long-term positive outlook of China's economy, closely aligned with policy requirements such as modernizing the industrial system and serving the development of new quality productive forces, the Securities Times reported.
The company said it will actively promote the entry of medium- and long-term funds into the market, and fully supports the healthy and stable development of the capital market.
As the volatility of global capital markets has spilled over into China's A-share market, CSRC on Monday held an investor symposium in Beijing during which Chairman Wu Qing said the regulator will do its best to prevent market risks, strengthen market supervision, promote high-quality development of the capital market, and safeguard stable market operation.
Late on Sunday, two central SOEs focusing on investment - China Reform Holdings Corporation Ltd and China Chengtong Holdings Group Ltd - announced support measures of about 60 billion yuan ($8.9 billion).
China Reform Holdings said its subsidiary had used over 50 billion yuan in special re-lending facilities for share buybacks and stake increases, alongside its own funds, aiming to safeguard market stability.
China Chengtong Group revealed that it had purchased nearly 10 billion yuan of shares in central SOEs, technology companies and exchange-traded funds.
As of press time, Chinese stocks rose in Tuesday morning trading, with the benchmark Shanghai Composite Index up 0.62 percent to 3,819.66 points. The Shenzhen Component Index was up 3.41 percent at 14,074.22 points.
A number of foreign financial institutions have also noted opportunities in the A-share market following the recent adjustment.
Goldman Sachs maintains an overweight stance on A-shares, particularly favoring AI and overseas expansion themes. The firm highlighted a valuation gap, with China's AI potential estimated at 50 percent to 100 percent above current prices.
It also suggested clients shift funds from South Korean AI stocks to similar stocks in China, according to media reports.
"After short-term volatility, we continue to view technology as the main market theme for the second half of the year," Meng Lei, China equity strategist of Swiss securities firm UBS Securities, said in a research note sent to the Global Times on Tuesday.
"Now that the overcrowding in technology-sector trading has been partially alleviated, we believe that the technology sector and AI will remain the core market theme for the second half of the year," Meng wrote.