China Bolsters Stock Market Amidst Tariff Turmoil

China's Central Huijin Investment intervened to stabilize domestic stocks on Monday, as U.S. tariffs and fears of a trade war caused significant market declines. By increasing equity holdings via ETFs, Huijin aims to bolster market confidence despite ongoing economic uncertainties and international trade tensions.

China took decisive action on Monday to stabilize its stock market, which has been reeling due to newly imposed U.S. tariffs. Central Huijin Investment, a division of China Investment Corp, announced it would bolster its equity holdings.

The intervention comes after the Shanghai Composite Index fell significantly, marking its worst trading day in five years. Triggered by 34% U.S. tariffs, China's market experienced a sharp decline, leading to increased concerns about a potential global recession.

Nevertheless, Huijin's strategic move tempered the market's losses, reflecting the state's continued confidence in China's capital market. However, experts suggest that broader measures may be necessary to counteract ongoing trade tensions.

(With inputs from agencies.)