FX.co ★ China Stocks Rise on Official Support

On Tuesday, Chinese stock markets experienced a recovery, as the Shanghai Composite Index rose by 1.58% to close at 3,146, while the Shenzhen Component Index climbed 0.64% to 9,425. This upturn was driven by Beijing's intervention to stabilize financial markets in the face of growing trade tensions with the United States. Several state-owned enterprises in China announced plans for share buybacks and new investment commitments. Concurrently, the People's Bank of China demonstrated its support for the sovereign wealth fund, Central Huijin, as it increased equity acquisitions—an action intended to reinforce investor confidence. This positive market movement occurred despite U.S. President Donald Trump's escalation of the trade conflict, through his warning of a potential 50% increase in tariffs on Chinese imports unless China removed tariffs on American products. Chinese authorities firmly dismissed this ultimatum, condemning it as "blackmail," and pledged to "fight to the end" to protect their national interests. Among the leading advancers were Kweichow Moutai, which rose by 3.0%, Contemporary Amperex with a 1.8% increase, and East Money Information up by 1.9%.