China state fund's boost in bank stakes will stimulate market

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BEIJING : The increase in stakes by Chinese state fund Central Huijin Investment in the country's four major banks is expected to draw more investors to the market, the official China Securities Journal said in a commentary on Friday.

"Critically-timed 'actions' by key shareholders" have given positive signals to stabilise expectations and strengthen confidence in the market, the newspaper said.

The move, which lifted Chinese shares, followed a raft of stimulus efforts to revive a flagging stock market which saw the key benchmark fall to 11-month lows earlier this week.

 

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