Stocks plunge after US tariff hike

Investors across globe set to lower their risk appetite

While the Chinese stock market was not immune from Monday's global stock market meltdown after the United States announced wide-ranging tariffs, the A-share market will likely gain continued favor from investors, as China has plenty of policy room in the midterm to long run and its economy is resilient enough to offset the impact of the sweeping tariffs, said experts.

Although the benchmark Shanghai Composite Index and Shenzhen Component Index were down by 7.34 percent and 9.66 percent respectively on Monday, action was taken immediately. Central Huijin Investment, an arm of China's sovereign wealth fund, said during the late trading hours on Monday that it had increased its holdings in exchange-traded funds.

Fully acknowledging the A-share market's current investment value, Central Huijin said it would increase its exposure and firmly safeguard the stable operation of the capital market.