FX.co ★ China Stocks Rise on State-Backed Support

Mainland Chinese stocks advanced for the second consecutive session on Wednesday. The Shanghai Composite Index increased by 0.9%, reaching 3,175, and the Shenzhen Component Index rose by 1.22%, closing at 9,540. These gains occurred even amidst the implementation of the new aggressive tariffs imposed by the U.S. However, China's efforts to stabilize its markets appeared effective. Authorities have been encouraging state-owned financial institutions to increase equity investments and several publicly traded companies have initiated share buyback programs. Premier Li Qiang emphasized confidence in China's economic robustness, asserting that Beijing is well-equipped with sufficient measures to "fully offset" any external challenges. Concurrently, President Trump's recently enacted tariffs on Chinese imports, which now total an accumulative 104%, came into effect. In response, China reiterated its resolve to retaliate, promising to "fight to the end." Leading the market were East Money with a gain of 5.2%, Yonghui Superstores up by 7.5%, and Cambricon Technologies rising by 9.5%.