China pledges state buying after Star Market tech rout
China’s securities regulator pledged coordinated intervention after state-backed buyers spent at least 60 billion yuan (US$8.86 billion) to halt a selloff that pushed the tech-heavy Star Market into bear territory.
Source: South China Morning Post · July 21, 2026 at 6:58 PM · AI-assisted report
Single-source
KUALA LUMPUR, 22 JULY 2026 —
China’s securities regulator pledged coordinated intervention after state-backed buyers spent at least 60 billion yuan (US$8.86 billion) to halt a selloff that pushed the tech-heavy Star Market into bear territory.
Market Impact
The China Securities Regulatory Commission (CSRC) said on Monday it would “adhere to coordinated measures to prevent risks” and keep the market stable, transparent and open. Chairman Wu Qing told investors the regulator would maintain “a transparent, fair and open market order” so participants could share the benefits of growth.
The CSI 300 added 1.5% on Monday, while the Star Market 50 rose 0.2% after last week’s 20% drop from its 2025 high. Hong Kong’s Hang Seng jumped 2.4%.
State investors acted on Sunday night. China Reform Holdings said it deployed more than 50 billion yuan through a central-bank relending programme and would keep adding stakes. China Chengtong Holdings Group separately said it bought nearly 10 billion yuan of mainland stocks and would continue purchasing central-government companies and technology firms.
The buying echoes previous “national team” interventions. After April 2025 tariffs triggered a global equity slump, the CSI 300 gained about 30% over the next 12 months, according to Bank of America strategist Gina Wu.
State shareholders also stepped up support. China Railway Rolling Stock Corporation and Aluminum Corporation of China said they would raise stakes in listed units. China Pacific Insurance said it would lift stock investments and prepare an interim dividend. Carmaker SAIC Motor said its state parent had pledged not to cut its stake for six months.
The urgency reflects the Star Market’s role in funding China’s technological push. The exchange hosts chipmakers such as Semiconductor Manufacturing International Corporation and Cambricon Technologies, seen as potential rivals to US firms like Nvidia in the AI rivalry. The intervention also aims to steady the market ahead of mega IPOs, including ChangXin Memory Technologies’ US$9.8 billion Shanghai float—the country’s second-largest onshore listing—and a planned share sale by humanoid robot maker Unitree Robotics.
Regional tech shares had fallen in lockstep with the global unwinding of leveraged positions in South Korean chip stocks and rising inflation expectations. The CSRC’s Monday meeting underscored its intent to keep the market resilient as Beijing prepares to absorb large new floats and maintain capital inflows into domestic equities.