Two State Capital Operation Central SOEs Unveil Large-Scale Stock Buying Plans to Stabilise Domestic Capital Markets

According to Xinhua News Agency, two central state-owned enterprises under the supervision of the State-owned Assets Supervision and Administration Commission released separate announcements after market hours on 19 July outlining large-scale share purchase programmes to underpin orderly capital market operations.

China Guoxin Holdings Co., Limited issued a formal statement affirming solid confidence in the long-term trajectory of China’s capital markets and consistent backing for technological innovation and high-quality development across central state-owned enterprises. Affiliated investment arm Guoxin Investment has deployed more than 500 billion yuan drawn from the dedicated central bank re-lending facility for share repurchases and equity top-ups, alongside matching supporting funds, with all capital channelled into market stabilisation work. The entity will continue to leverage the full scope of the re-loan policy instrument while supplementing such funding with internal capital reserves to scale up holdings in listed central SOE equities. The coordinated capital deployment aims to safeguard the strategic value of core domestic market assets and sustain steady, sound operation of the broader stock exchange ecosystem.

China Chengtong Holdings Group rolled out its own large-scale equity acquisition initiative on the same evening. The parent firm and its subsidiaries Chengtong Capital and Chengyang Investment have completed aggregate purchases of nearly 100 billion yuan worth of domestic listed equities in recent trading sessions, with investment focus fixed on state-owned central enterprise stock instruments. The operator’s statement underscores unwavering optimism regarding China’s economic fundamentals and capital market outlook. Upcoming activity will combine internal capital and the designated share repurchase re-loan tool to ramp up acquisitions of central SOE equities, technology-focused listed stocks and exchange-traded funds. All planned buying activity targets the maintenance of balanced market liquidity and stable trading sentiment.

Both groups operate as state capital operation pilot platforms, tasked with managing state-owned equity assets and implementing market stabilisation mechanisms backed by targeted monetary policy tools. The share repurchase and equity increase re-loan scheme rolled out by financial regulators supplies low-cost long-term capital to qualified institutional investors, easing funding constraints for large-scale share acquisition programmes. The closed-loop fund management framework attached to the facility ensures all borrowed capital is strictly ring-fenced exclusively for equity buying activities.

Institutional investors across the market track the sustained buying activity from state capital platforms, which sets a benchmark for long-term value allocation among major market participants. The two operators will keep rolling out phased equity purchase tranches in line with market trading conditions, blending policy-backed low-cost financing and internal operating capital to maintain consistent support for domestic listed equities centred on state-owned industrial and technological assets.