Central Huijin purchases 'to boost A-share market'
Updated: 2013-06-17 17:35
By Xie Yu in Shanghai (chinadaily.com.cn)
Increasing purchases in the A-share market by a company linked to the sovereign wealth fund will soon benefit the stock market after it dropped to a six-month low last week, experts said.
The increased investment into the A-share market by Central Huijin, a subsidiary of China's sovereign wealth fund, will boost market performance, financial news portal Caijing said on Monday.
The benchmark Shanghai Composite Index grew by 0.09 percent to 2,163.88 on Monday morning.
Central Huijin Investment Co, China's main holding company for State-owned financial firms, bought shares of Everbright Bank and New China Life Insurance on the secondary market in Shanghai on Thursday and Friday, the two companies said in separate announcements.
Huijin purchased shares worth 0.05 percent of Everbright's total equity on Friday, raising its stake in the bank to 48.42 percent, Everbright said in a filing to the Shanghai Stock Exchange.
The company also purchased shares worth 0.06 percent of New China Life, the insurer said on its website, raising Huijin's total stake to 31.29 percent.
Both purchases were worth more than 100 million yuan ($16.31 million) based on trading-day share prices.