According to Bloomberg, the People's Bank of China (PBoC) said earlier on Tuesday that it would provide support to the sovereign fund if necessary and firmly supported its decision to increase its stock holdings.

In a statement, China's central bank said it would provide financial assistance to Central Huijin Investment Co., Ltd. through a re-lending program if necessary to ensure the stability of the capital market.

Separately, China Chengtong Holdings Group and China Reform Investment Corp (CCIC) said they would increase investments in stocks and ETFs, echoing a similar move by Central Huijin Investment Co. earlier in the day.