Chinese shares jump as state investment fund pledges to expand share holdings to aid sagging markets

By ELAINE KURTENBACH
AP Business Writer

BANGKOK (AP) — A major Chinese state investment fund has promised to expand its purchases of stock index funds, signaling Beijing’s resolve to stabilize sagging markets. Shares in Shanghai and Hong Kong surged Tuesday after the announcement by Central Huijin Investment. The Chinese sovereign fund has stepped up buying of shares in big state-owned banks and other companies to counter recent heavy selling pressure. The move followed warnings by China’s market regulator of a crackdown on market manipulation, insider trading and other abuses. The China Securities Regulatory Commission also promised to protect smaller investors who usually account for the majority of trading in Chinese markets.