Hong Kong stock market closed higher on Tuesday. The Hang Seng Index rose by 1.51%, the Hang Seng China Enterprises Index increased by 2.31%, and the Hang Seng Tech Index surged by 3.79%.

JD.com up 8.9%; Xiaomi up 6.7%; NIO up 5.5%; BYD Company up 4.8%; Meituan up 4.7%; Alibaba up more than 1%.

China’s state-backed funds are planning to buy local stocks in a bid to support the market, as an escalating trade war with the US erodes this year’s rally.

China Reform Holdings Corp. said it will spend 80 billion yuan ($10.9 billion) to increase holdings of shares in state-owned enterprises and technology firms as well as to buy exchange-traded funds. That followed word from sovereign funds Central Huijin Investment Ltd. and China Chengtong Holdings Group of equity purchases Monday.

A basket of eight exchange-traded funds favored by the so-called national team saw record net inflow of 42 billion yuan ($5.7 billion) Monday, amid Beijing’s coordinated efforts to stem an equities rout. An index of Chinese stocks listed in Hong Kong sank more than 13% on Monday, putting it into a bear market.

“Directly buying the market is one of the ways China can immediately tackle the impact from US tariffs and stabilize sentiment a bit,” said Steven Leung, an executive director at UOB Kay Hian in Hong Kong. “But, they will have to do more stimulus as well,” including rate cuts and fiscal spending.

Chinese officials have been discussing front-loading potential stimulus to offset the impact of tariffs. The market may need to see consistent interventions as the week unfolds if the authorities are determined to stabilize Chinese stocks.

The People’s Bank of China said Tuesday that it will provide sufficient re-lending support to Central Huijin Investment to maintain smooth operations of capital markets when necessary.