(Yicai) April 8 -- Chinese distiller Kweichow Moutai, oil major Petrochina and other Chinese large-cap, stable blue-chip stocks, have unveiled share buyback plans or announced that major shareholders will increase their holdings to give the mainland stock markets a boost after yesterday’s sharp drop triggered by the global fallout from the US government’s new Reciprocal Tariffs policy.

Kweichow Moutai is drafting a new round of share buybacks, and its controlling shareholder, Kweichow Moutai Group, is also working on a plan to increase its stake, the Renhuai-based company said, adding that it would announce the details of these plans soon.

Kweichow Moutai revealed a stock repurchase plan worth up to CNY6 billion (USD818 million) in December last year. So far, the company has bought back about CNY1.9 billion worth of shares, and it plans to repurchase the remaining amount soon, it added.

Petrochina, the publicly traded arm of China National Petroleum Corporation, said that its parent company will increase its stake in Petrochina’s listings on the mainland and in Hong Kong over the next 12 months, with a total value ranging from CNY2.8 billion (USD382 million) to CNY5.6 billion.

And another state-owned oil and gas giant China Petroleum & Chemical revealed that its parent firm, China Petrochemical Corporation, also known as Sinopec, will increase its stake in the Beijing-based company by between CNY2 billion and CNY3 billion worth of equity in the next year.

Other industry leaders, including battery maker Contemporary Amperex Technology, display panel giant BOE Technology Group and home appliance manufacturers Midea Group and Haier Smart Home, also said either last night or today that they were planning stock repurchases or that their shareholders will increase their shareholdings.

The US government’s recent higher-than-expected Reciprocal Tariffs have jolted stock markets around the world. Yesterday, as part of the fallout, the Shanghai Composite Index plunged 7.3 percent, the Shenzhen Component Index plummeted 9.7 percent and the ChiNext Index sank 12.5 percent.

In response to the crash, a number of state-backed investment firms pledged to buy more stocks yesterday to shore up the stock markets. Central Huijin Investment said that it will increase its holdings of exchange-traded funds to help keep the market stable. And China Chengtong Holdings Group and China Reform Holdings also said they would buy more stocks and funds.

Today, the mainland stock markets started to show signs of recovery. The Shanghai Composite Index closed up 1.6 percent at 3,145.55, the Shenzhen Component Index climbed 0.6 percent to 9,424.68, and the ChiNext Index rose 1.8 percent to 1,840.31.

Editor: Kim Taylor