China’s ‘Big Four’ Banks Soar as State Wealth Fund Increases Stake

China’s sovereign wealth fund, Central Huijin Investment, has recently increased its ownership stakes in four leading banks in the country. This move is aimed at revitalizing confidence in the Chinese stock market.

The four banks are Bank Of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and China Construction Bank. As a result, the share prices of these banks witnessed an increase between 2.43% and 4.73% during early trading on Thursday. Additionally, the broader CSI 300 index also experienced a gain of 0.69%.

Central Huijin Investment has raised its stakes in each of these banks by 0.01 percentage point, marking the first increase since 2015. The fund has declared its intention to continue accumulating holdings in these banks over the next six months, as stated in the regulatory filings.

“Huijin’s buying sends a strong signal regarding the top-down view and is expected to bolster market confidence,” commented Hao Hong, the chief economist of Grow Investment Group. He believes that this move by Central Huijin Investment will have a positive impact on the overall market sentiment.

Chinese stock markets have been facing uncertainty due to the recent turmoil in the real estate sector, especially with major property giants like Evergrande and Country Garden struggling to meet their debt obligations. As a consequence, the CSI 300 index has witnessed a decline of nearly 5% so far this year.

Investors are now eagerly awaiting the release of China’s third-quarter GDP data, scheduled for next week, as it will provide further insights into the country’s economic performance.