China’s big banks shares elevated after the country’s sovereign wealth fund announced it was lifting its stake in them. The conjugal arm of China Investment Corporation, Central Huijiin, bought shares in four major banks on Monday, reported the official Xinhua news agency. Since the global financial crisis in 2008 this is the first share purchase. The main intend of this share rise was to enhance the confidence shaken by foreign markets and domestic policy. Shares in Agricultural Bank of China edged more than 12% on Hong Kong's main index, whereas Industrial and Commercial Bank of China rose 7% in early trade.
Victor Wang from Macquarie Securities said "They're showing confidence in the banks, and support from the central government,"
As per Financial Times Chinese banks shares have fallen 30% in recent months.
Though Chinese growth persists to show strength, analysts report investors are worried about the euro zone debt crisis and a slowdown in the US economy.
Details of the move by Central Huijin were given by four Chinese leaders later. Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank Corporation and Bank of China said 39.1 million, 14.6 million, 7.4 million and 3.5 million of their Shanghai-listed shares were bought on Monday
The figures only amount to a small boost in the stake held by Central Huijiin in the banks, which is by now the largest shareholder in the country’s big lenders. It also added in a report to the Hong Kong stock Exchange that it will keep on amplifying its holdings in the four banks over the next year
