China Backs Sovereign Wealth Fund's Stock Market Support

China's central bank supports Huijin Investment's increased stock market fund holdings. The People's Bank of China would provide support to ensure market stability. Recently, Huijin intervened to stabilize domestic stocks amidst U.S. tariff concerns.

In a significant move on Tuesday, China's central bank announced its support for Central Huijin Investment, a sovereign wealth fund, as it increases its investments in stock market index funds.

The People's Bank of China stated it would offer re-lending support to Central Huijin Investment, a subsidiary of China Investment Corp, to ensure the capital market's smooth operation if required.

Earlier, on Monday, Huijin stepped in to shore up domestic stocks which had suffered due to the ongoing uncertainty over U.S. tariffs.

(With inputs from agencies.)