China Steps In to Boost Stock Market

By Sherry Qin

Chinese state-owned firms are swinging into action to support stock prices after sharp falls on Monday. Moves Tuesday include:

-Central Huijin, a unit of state-owned sovereign wealth fund China Investment, said it was buying more index exchange-traded funds as a show of confidence. Other funds made similar moves. The Chinese central bank said it would support Central Huijin as needed.

-One of the biggest state-owned oil companies, known as Sinopec, said it would buy back the equivalent of $273 million to $409 million of its own shares, and other state-owned companies announced share buybacks.

The Shanghai Composite Index was up slightly in Tuesday morning trading after falling 7.3% on Monday.

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