The story appears on

Page B2

October 13, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Finance

Huijin boosts market morale with buying

CENTRAL Huijin Investment Co has started a new one-year program of buying yuan-backed A shares of China's three state-owned banks to shore up market confidence, the lenders said yesterday.
Huijin, a unit of China's US$200-billion sovereign wealth fund, has recently bought additional shares in the Industrial and Commercial Bank of China, China Construction Bank and the Bank of China, the three lenders said in filings to the Shanghai Stock Exchange yesterday.
Huijin will continue buying shares of the three banks over 12 months.
"Huijin's continued buying into the banks shows the central government's support for the stock market," said Qiu Zhicheng, a Guosen Securities Co analyst.
Huijin made the new round of purchases ahead of the expiry of ICBC's three-year lock-up period. About 70 percent of ICBC's total shares, or 236 billion A shares, are due to become tradable on October 27. Huijin owns half of these shares while the Ministry of Finance takes the remainder.
Huijin bought 30 million ICBC shares, boosting its stake to 35.42 percent from 35.41 percent, in the new round of buying. It bought 5.1 million shares in BOC, increasing its share to 67.5 percent. It also bought 16.1 million shares in CCB, raising its holding to 57.09 percent.
The banks did not say how much Huijin spent to buy the additional shares.
The purchases came after the lenders said last month that Huijin had completed a year-long program starting September 23, 2008, to buy their shares.
Huijin bought into the lenders then to stabilize the stock market.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend