(Bloomberg) -- China’s sovereign wealth fund increased its stake in the nation’s biggest banks for the first time since 2015, stoking speculation that...
-- China’s sovereign wealth fund increased its stake in the nation’s biggest banks for the first time since 2015, stoking speculation that authorities will intensify efforts to prop up its sinking stock market.State-owned Central Huijin Investment Ltd. bought about $65 million worth of shares in Bank of China Ltd., Agricultural Bank of China Ltd., China Construction Bank Corp. and Industrial and Commercial Bank of China Ltd., according to filings Wednesday. Huijin, a unit of the $1.
“Central Huijin’s modest yet symbolic investments are very likely aimed at supporting share prices, which has already led to a positive market response,” Redmond Wong, a market strategist at Saxo Capital Markets in Hong Kong, said in a note. “This move, reminiscent of its actions during the 2015 Chinese equity market turmoil, signifies the government’s desire to maintain market stability.
Central Huijin holds stakes in 19 financial institutions including banks and brokerages, according to its website. “The national team buying is a much bigger deal to the market and to confidence than the trove of measures including lowering the stamp duty in August,” said Li Fuwen, fund manager at Guangdong Value Forest Private Securities Investment Management. “What the market is in desperate want of now is fresh source of funds, and even if it is just a few hundred million a day, this is the way to salvage confidence.
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