Investing.com - China has unveiled a raft of measures aimed at stabilizing its stock markets as Beijing grapples with uncertainty posed by US President Donald Trump's second term, according to media reports.
In a notice from the China Securities Regulatory Commission on Wednesday, the country's central government sent out a directive to "steady" the equity market and "clear bottlenecks for the introduction of mid-long term capital", Bloomberg News reported.
The securities regulator added that it will instruct large state-owned insurers to increase A-share investment and tell listed companies to issue more share buybacks, Bloomberg said. Institutions like mutual funds, pensions, and wealth management divisions at banks will then be allowed to participate in share placements as strategic investors, according to the new policies.
Regulators will implement a performance evaluation for state-backed insurers, with the annual return on equity weighted at no more than 30% of the evaluation, Reuters reported.
China's stock market has slumped so far in 2025, slipping to its worst start in nine years, as investors fret over signs of sluggish economic performance and a sputtering property market that weighed on the country throughout last year.
Analysts have now suggested China could also announce potential steps to address the possible impact of US import tariffs under Trump.
On Tuesday, Trump threatened to slap a 10% duty on Chinese imports as early as February 1, aligning with a deadline he set for Mexico and Canada earlier this week. Trump, who had previously vowed to impose as much as a 60% tariff on China, said that the threat of the duties may force Beijing to clamp down on the trade of fentanyl across US borders.
Equities in China dipped on Wednesday in the wake of Trump's statements. Although the 10% tariff level would be below what many investors had initially factored in, worries remain that Trump's actions could spark an uptick in stock market volatility.
(Reuters contributed reporting.)