Central Huijin has increased its holdings of four major banks and three major indexes

(Shanghai/Hong Kong Comprehensive News) As the A -share market continues to be sluggish, China State -owned Fund Central Huijin Company has once again increased its holdings of four major state -owned banks and released signals to stabilize the capital market.The news boosted, the three major A -share indexes rose collectively on Thursday (October 12), and bank stocks were popular across the board.

Agricultural Bank of China, Bank of China, Construction Bank, ICBC issued an announcement on Wednesday evening, saying that the controlling shareholder will increase its holdings.Huijin will also continue to increase its shares in the secondary market in its own name.

Central Huijin each increased its holdings of 0.1%of the four major banks for the first time. Based on the closed price of Wednesday, it invested about 477 million yuan (about S $ 89 million).

Central Huijin is a wholly state -owned company that invests in equity investment in key state -owned financial enterprises to achieve value -added and appreciation of state -owned financial assets.This is eight years later, the Central Huijin enrolled again to increase its holdings of four major banks. As the A -share market continues to weaken, the move "rescue the market" is obvious.

Many economic securities newspapers published the news on the front version on Thursday, emphasizing that this will boost investor confidence.The Securities Times quoted Yang Delong, chief economist of Qianhai Open Source Fund, said that the real gold and silver of the Central Huijin is of great significance to the stock market. It releases a positive signal of continuous investment and care for the market, which will effectively boost market confidence.

Affected by the favorable news, the three major A -share indexes rose across the board on Thursday, and the Shanghai Stock Exchange Index closed up 0.94%, of which the bank sector rose 1.38%, and the banks of China closed up 3.18%.

"National Team" has repeatedly rescued the field analysis: only short -term relief

However, analysts have different views on the effects of the "national team" intervention in the stock market.Bloomberg quoted senior analysts of Fastusbal Asia that in the current environment, China's macro fundamentals are still the main driving factor in the stock market, and Huijin's move will not "finally change the rules of the game."

The "national team" represented by China Certificate Jin and Central Huijin has previously entered the market many times, but only played a short -term relief.When the Chinese stock market plummeted continuously in 2015, the Central Huijin Company also entered the market. The CSI 300 index rebounded briefly, and fell more than 20%in the following months.

While stabilizing the capital market, China is also reported that more severe measures are taking more strict measures to limit the outflow of funds.A Chinese official document seen by Reuters shows that it is forbidden to from domestic securities firms and its overseas branches to absorb new mainland customers for offshore transactions. The new investment of existing customers will also be "strictly monitored" to prevent investors from bypassingChinese foreign exchange control.

This is the first time that China has issued a similar notice. It is expected that large securities firms such as CITIC Securities, CICC and Haitong Securities will affect state -owned CITIC Securities, CICC and Haitong Securities. Because offshore trading services are the main source of income from their Hong Kong subsidiaries.