Beijing’s state-backed investors spent nearly $9 billion over the weekend to counter a sharp AI-driven selloff in equities.
China’s state-backed investors injected nearly $9 billion into equity markets over the weekend to halt a steep AI-driven tech selloff. The intervention targeted stability risks as policymakers sought to reverse a month-long decline in key indices.
The Shanghai Composite rebounded on Monday, while the ChiNext, down 21% for the month, showed partial recovery. State firms China Reform Holdings and China Chengtong Holdings led the effort, deploying $7.38 billion and $1.48 billion, respectively, for share buybacks and stake increases.
Investors are monitoring whether the support will persist or prove temporary as underlying concerns over AI spending and market fundamentals remain unresolved.