Stocking agents following the evolution of shanghai stock market price evolution, Photo: Nicolas Asfouri / AFP / Profimedia Images
The Sovereign Fund of China, Central Huijin Investment, announced on Monday that it increases its holders in Chinese actions and will defend the stability of the market, statements that come after a strong decrease in local actions, against the background of fears that an increasing trade war will trigger a serious economic recession, Reuters reports.
The directors of Huijin declared in a press release “firm optimism regarding the development perspectives of the capital market in China and the full recognition of the current value of investments in class A”. In Finance, a class A action refers to a category of ordinary or preferential securities that usually offer increased benefits in dividends, sales of assets or voting rights.
The Chinese state fund has bought shares listed in China through stock exchange funds (ETFs) and will continue to increase its holders in the future to “ensure the smooth functioning of the capital market,” Huijin said in a statement.
The Shanghai Composite (.SSEC) index of the Chinese Stock Exchange has dropped by 7%on Monday, on the worst day of the last five years, after investors have sold large -scale shares, following new customs taxes on China, which has responded with its own 34%taxes.
Asian markets were strongly affected on Monday, deepening the losses of the previous week, given that US President Donald Trump did not give any sign that he would give up his extensive customs taxes, which threaten to feed inflation, to disturb the global supply chains and to trigger an global slowing down.
The scholarships in Europe have in turn registered dramatic decreases after opening the financial markets on Monday.
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Live massive decreases on European scholarships Monday morning, after the slaughter on the Asian markets / third day of fast decrease, do you bet investors on recession?
