Central Huijin Steps Up Investment To Bolster Stock Market

Central Huijin Investment, the domestic arm of China’s sovereign wealth fund China Investment Corporation, bought exchange-traded funds on Monday to shore up the sagging stock market. It did not elaborate on the amount of ETFs it purchased but said it will keep increasing such holdings in future. Earlier this month, the state-run fund also boosted its stake in the A-shares of the nation’s Big Four lenders. Huijin’s purchase of ETFs will have a more obvious driving effect on the market, while other conventional policies have limited impact amid a vicious cycle of irrational capital outflows, said Li Zhan, chief economist of China Merchants Fund. (Source: Yicai)