Chinese state fund buys shares to support country's biggest banks

Lenders say Central Huijin Investment plans to boost holdings in next six months

Foreign investors have retreated from shares in Chinese banks and other companies after the relaxation of COVID-19 restrictions failed to produce the anticipated economic boom. © EPA/Jiji

KENJI KAWASE and ECHO WONG, Nikkei staff writers

October 12, 2023 15:50 JST

Updated on October 12, 2023 18:51 JST

HONG KONG -- A Chinese government-backed fund has demonstrated its support for the nation's four major state banks, buying their shares in the open market for the first time since mainland equities plunged in 2015.

In virtually identical statements Wednesday night, the big four lenders -- Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Agricultural Bank of China (ABC) and Bank of China (BOC) -- said Central Huijin Investment had purchased their Shanghai-listed shares and "intends to continue to increase" its holdings in the next six months.