China has signalled its intent to shore up investor sentiment in the country's domestic stock markets as indicated by the share purchase plans of an investment arm of the country's sovereign-wealth fund and a move to raise holdings by majority shareholders in two Chinese state-owned companies.
The moves come days after the benchmark Shanghai Composite Index on Sept. 26 briefly dipped below the 2,000 level for the first time since February 2009, triggering alarm bells.
The index has rebounded in the past two sessions, ending up 0.2% at 2119.94 Wednesday, helped by China's central bank move earlier this week to inject its second-largest amount of daily funds into the money market, extending its effort to ease monetary conditions and bolster a slowing economy.
Investors are also hoping that more supportive measures will be introduced to boost the domestic economy after a once-in-a-decade leadership transition in November.
Central Huijin Investment Ltd. said in a statement on late Wednesday that it bought shares in four major Chinese banks in the secondary market on Wednesday and flagged plans to continue with its share purchase program, in an extension of a year-long program that lapsed yesterday.
Central Huijin said it raised its stakes in four major banks: Industrial & Commercial Bank of China Ltd. (1398.HK, 601398.SH), Agricultural Bank of China Ltd. (1288.HK, 601288.SH), Bank of China Ltd. (3988.HK, 601988.SH) and China Construction Bank Corp. (0939.HK, 601939.SH).
It started buying the shares last October to stabilize the share prices of the state-controlled commercial banks and to prop up the struggling stock market at the time.
The benchmark Shanghai index slumped 22% last year. Central Huijin said it increased its stake in ICBC by 116.64 million shares in the past four quarters, while its stake in Bank of China rose by 251.27 million during the same period.
Huijin's stake in China Construction Bank increased by 117.02 million shares from the fourth quarter of last year to the end of June, and its stake in AgBank rose by 347.04 million during the same period.
Beijing has also stepped up its calls for shareholders of listed companies to raise their stakes in recent months, as part of its efforts to rejuvenate the stock market.
China Coal Energy Co. (601898.SH) and China Yangtze Power Co. (600900.SH) also flagged stake increases by major shareholders.
China Coal Energy said in a filing to the Shanghai Stock Exchange that China National Coal Group Co., its majority shareholder, bought 2.52 million A shares, or shares listed in mainland China, on Wednesday, while China Coal Hong Kong Ltd., one of the group's units, acquired 700,000 of the company Hong Kong-listed shares on the same day, taking the combined stake of the two firms to 57.54% from 57.52%.
Including latest increase, China National Coal Group plans to increase its stake by up to 2.5% over the next 12 months, China Coal Energy added.
China Yangtze Power Co. (600900.SH) said China Three Gorges Corp., its parent group, bought 1.35 million shares on Tuesday, taking its stake in the state-owned hydro power producer to 73.294% from 73.286%, with plans to accumulate up to 2% shares of its listed unit over the next six months.
foxbusiness.com
The moves come days after the benchmark Shanghai Composite Index on Sept. 26 briefly dipped below the 2,000 level for the first time since February 2009, triggering alarm bells.
The index has rebounded in the past two sessions, ending up 0.2% at 2119.94 Wednesday, helped by China's central bank move earlier this week to inject its second-largest amount of daily funds into the money market, extending its effort to ease monetary conditions and bolster a slowing economy.
Investors are also hoping that more supportive measures will be introduced to boost the domestic economy after a once-in-a-decade leadership transition in November.
Central Huijin Investment Ltd. said in a statement on late Wednesday that it bought shares in four major Chinese banks in the secondary market on Wednesday and flagged plans to continue with its share purchase program, in an extension of a year-long program that lapsed yesterday.
Central Huijin said it raised its stakes in four major banks: Industrial & Commercial Bank of China Ltd. (1398.HK, 601398.SH), Agricultural Bank of China Ltd. (1288.HK, 601288.SH), Bank of China Ltd. (3988.HK, 601988.SH) and China Construction Bank Corp. (0939.HK, 601939.SH).
It started buying the shares last October to stabilize the share prices of the state-controlled commercial banks and to prop up the struggling stock market at the time.
The benchmark Shanghai index slumped 22% last year. Central Huijin said it increased its stake in ICBC by 116.64 million shares in the past four quarters, while its stake in Bank of China rose by 251.27 million during the same period.
Huijin's stake in China Construction Bank increased by 117.02 million shares from the fourth quarter of last year to the end of June, and its stake in AgBank rose by 347.04 million during the same period.
Beijing has also stepped up its calls for shareholders of listed companies to raise their stakes in recent months, as part of its efforts to rejuvenate the stock market.
China Coal Energy Co. (601898.SH) and China Yangtze Power Co. (600900.SH) also flagged stake increases by major shareholders.
China Coal Energy said in a filing to the Shanghai Stock Exchange that China National Coal Group Co., its majority shareholder, bought 2.52 million A shares, or shares listed in mainland China, on Wednesday, while China Coal Hong Kong Ltd., one of the group's units, acquired 700,000 of the company Hong Kong-listed shares on the same day, taking the combined stake of the two firms to 57.54% from 57.52%.
Including latest increase, China National Coal Group plans to increase its stake by up to 2.5% over the next 12 months, China Coal Energy added.
China Yangtze Power Co. (600900.SH) said China Three Gorges Corp., its parent group, bought 1.35 million shares on Tuesday, taking its stake in the state-owned hydro power producer to 73.294% from 73.286%, with plans to accumulate up to 2% shares of its listed unit over the next six months.
foxbusiness.com
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