Central Huijin to buy more A-shares

BEIJING - State-owned Central Huijin Investment Ltd said on Thursday that it will purchase more A-shares in six of China's financial institutions over the next six months.

The investment company said in a statement that it has increased its A-share stakes in Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China and China Construction Bank, or the country's "big four" banking institutions.

It has also increased its stakes in mid-sized lender China Everbright Bank and New China Life Insurance Co Ltd.

The company said it has also purchased exchange-traded funds (ETF) on the secondary market and will continue related market operations.

Central Huijin's official statement came after the "big four" banks specified the purchases in separate filings to the Shanghai Stock Exchange on Monday.

After the purchases, Central Huijin owns a 35.46-percent stake in ICBC, 40.24 percent of ABC, 67.74 percent of Bank of China and 57.23 percent of China Construction Bank, according to the filings.

Established in 2003, Central Huijin holds the Chinese government's stakes in commercial banks, securities companies, insurance firms and other institutions.

The company's recent moves have been considered by many as an apparent effort to shore up market confidence.

On Thursday, the benchmark Shanghai Composite Index fell 2.77 percent to end at 2,084.02, the lowest level in almost six months. The Shenzhen Component Index also declined 3.25 percent to 8,147.48.