Chinese lenders rally after state wealth fund buys shares

By

Sharecast News | 12 Oct, 2023

Updated : 09:33

20:57 21/11/24

  • 0.00
  • 0.00%0.00
  • Max: 0.00
  • Min: 0.00
  • Volume: 0
  • MM 200 : 3.39

Shares in some of China’s biggest banks rallied on Thursday after the country’s sovereign wealth fund increased its holding in the lenders.

In separate statements, Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China and China Construction Bank said Central Huijin Investment had boosted its holding by 0.01%.

Bank of China said that the fund, which had previously held 64.02%, now controlled approximately 64.03% after buying 24.9m shares.

All four also noted that the Beijing-based fund expected to further increase the holdings in the coming months.

As at 0915 BST, Bank of China, Industrial and Commercial Bank of China and China Construction Bank were all 3% higher. Agricultural Bank of China was ahead nearly 1%.

It is the first time Central Huijin Investment, which is mandated to make equity investments in major state-controlled financial institutions on behalf of Beijing, has increased its stake in domestic banks since 2015.

Michael Hewson, chief market analyst at CMC Markets UK, said the move had “all the hallmarks of a government-inspired initiative to boost confidence”.

Last news