Chinese shares rose in early trading on Thursday, after a state fund increased stake in the nation’s biggest banks following a slew of stimulus efforts to revive a flagging stock market.
China’s blue-chip stock was up roughly 0.7 per cent, while the Hang Seng Index climbed 1.8 per cent in early morning trade.
China’s “Big Four” state banks said late on Wednesday that their controlling shareholder Central Huijin Investment bought the lenders’ Shanghai-traded shares, and plans to further increase holdings within the next six months.
The measures came after China’s stock benchmark fell to 11-month lows this week despite a slew of supportive measures by the government.
“The ‘real money’ by Central Huijin is of great significance to the stock market,” said Yang Delong, chief economist at First Seafront Fund Management.
“It sent a strong signal of ‘continuous investment’ in the market. This will play an important and positive role in boosting investor confidence,” he said.
The SSE Banks Index climbed roughly 1 per cent. — Reuters
