(Yicai) April 8 -- China’s stock markets rose after its three major state-backed investment funds, including sovereign fund Central Huijin Investment, said they will buy more Chinese stocks to steady the market after a global rout yesterday in the wake of escalating trade tariffs.

Chinese stock markets from Hong Kong to Beijing gained today, with the ChiNext and Star 50 indexes, which track tech-heavy trading boards in Shenzhen and Shanghai, closing up 1.8 percent and 1.7 percent, respectively.

“Central Huijin Investment firmly believes in the development prospects of the Chinese capital market, fully recognizes the value of A-share allocation, and has once again increased its holdings of exchange-traded funds,” it announced late yesterday.

“Central Huijin will continue to increase its holdings and resolutely maintain the stable operation of the capital market,” the fund added.

China Reform Holdings said it will spend an initial CNY80 billion (USD10.9 billion) through its subsidiary Guoxin Investment Group to buy more shares of central state-owned enterprise and technology stocks as well as exchange-traded funds.

China Chengtong Holdings Group, the third fund, announced that it also “firmly believes in the development prospects of the Chinese capital market” and said two of its units increased their holdings of central SOE stocks and ETFs.

China Reform was set up in 2010 as a part of the government's broader efforts to reform and modernize the state sector. In 2016, it became a pilot state-owned capital operation company whose scope encompasses investment, finance, and asset management. It had assets worth CNY980 billion (USD133.8 billion) as of Dec. 31, with the profit exceeding CNY20 billion last year.

Editor: Futura Costaglione