2023-10-12 03:38:54 ET
China's sovereign wealth fund Central Huijin Investment marginally raised its stake in the country's four biggest banks for the first time since 2015, kindling hopes that authorities will step in to prop up the stock market amid an exodus of global funds.
The fund bought 24.9M shares in Bank of China ( OTCPK:BACHF ) and 37.3M shares in Agricultural Bank of China ( OTCPK:ACGBY ). Huijin also picked up 27.6M shares in Commercial Bank of China ( OTCPK:IDCBY ) and 18.4M shares in China Construction Bank ( OTCPK:CICHY ).
Huijin plans to continue growing its stake in each of the four banks by buying shares in the secondary market within the next six months.
"Huijin's modest yet symbolic investments are very likely aimed at supporting share prices," said Redmond Wong, market strategist, Saxo Capital Markets.
The Hong Kong-listed shares of Bank of China and Agricultural Bank of China rose more than 4% each, while Commercial Bank of China and China Construction Bank gained over 5% each.
The CSI 300 Index ( SHSZ300 ), which tracks the top 300 stocks traded on the Shanghai Stock Exchange, rose 0.9% .
ETFs: ( FXI ), ( KWEB ), ( CQQQ ), ( MCHI ), ( ASHR ), ( YINN ), ( TDF ), ( CHIQ ), ( GXC ), ( EWH ), ( KBA ), ( YANG ), ( CXSE ), ( CAF ), ( CWEB ), ( PGJ ), ( KURE ), ( CHIX ), ( CYB ).
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China sovereign wealth fund raises stake in 'Big Four' banks