China’s State Investors Face AI Stock Volatility as Beijing Defends Long-Bull Strategy

Beijing, China, 18 August 2026 – China’s state-backed investors are facing a difficult test as speculative enthusiasm for artificial-intelligence shares collides with Beijing’s effort to build a steadier, long-term bull market. The policy response has contained some volatility, but it has also highlighted how difficult it is to manage valuations in a technology-led equity cycle.

The so-called national team of state-owned investment companies has been buying and selling stocks and exchange-traded funds to support market stability. China Reform Holdings and China Chengtong Holdings recently declared themselves firmly optimistic on equities and deployed RMB60 billion, or about US$8.9 billion, through a relending facility backed by the People’s Bank of China.