Amid global market volatility triggered by US tariff measures, China's state-owned enterprises (SOEs) are stepping up efforts to stabilize the domestic capital market. Starting April 7, over 100 companies unveiled stock buyback and share increase plans, with prominent insurance firms committing to intensified investments in the market. These measures are designed to bolster confidence in China's economic prospects and the development of its capital markets.
Key developments on state-backed investments
Aluminum Corporation of China
On April 8, Aluminum Corporation of China announced a significant buyback plan, reflecting its confidence in China's long-term economic stability and growth. The company pledged to strengthen market value management and enhance shareholder returns by implementing stock buybacks and share increases. It plans to invest between RMB 10 billion and RMB 20 billion to support its listed subsidiaries.
China Minmetals Corporation
China Minmetals Corporation announced on April 9 its unwavering confidence in the long-term positive trajectory of China's economy and a strong outlook for the country's capital markets. According to the announcement, Yanhu Industry (000792.SZ), a publicly listed company controlled by China Minmetals, has disclosed a plan for its controlling shareholder to increase its stake by no less than 4% of the total share capital. This share increase plan is aimed at optimizing the equity structure of the listed company, safeguarding the interests of all shareholders, and stabilizing and enhancing the company's overall value.
State Grid Corporation of China
State Grid disclosed a stock repurchase plan on April 8 for its listed subsidiary, Nari Technology Co., with an estimated buyback value of RMB 5–10 billion. The company emphasized its commitment to improving shareholder returns and stabilizing market confidence.
China Three Gorges Corporation
The China Three Gorges Corporation announced a new round of share purchases for its subsidiary, China Three Gorges Renewables, with plans to invest between RMB 15 billion and RMB 30 billion. The initiative aims to boost investor confidence and enhance the company's market value.
State Power Investment Corporation
State Power Investment Corporation unveiled plans to accelerate mergers and acquisitions, focusing on asset integration and listing high-quality assets. The group is currently restructuring three of its subsidiaries—China Power, SPIC Yuanda Environmental-Protection, and SPIC Industry-Finance Holdings.
Shanghai's three state-owned platforms
Three major Shanghai-based state-owned platforms—Shanghai International Group, Shanghai Guosheng Group, and Shanghai State-owned Capital Investment Co.—reaffirmed their confidence in China's capital market on April 8. These entities committed to acquiring ETFs and equities of Shanghai-based SOEs, supporting listed companies through strategic investments, and promoting high-quality development.
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