Oct. 11 (Bloomberg) -- Central Huijin Investment Ltd.’s announcement that it has started buying shares of China’s four- biggest banks will bolster the stock market, according to China International Capital Corp.
“We should expect at least some relief on selling pressure from this move by Huijin, if history is a guide,” Hao Hong, a Beijing-based global equity strategist, said in a report to clients. Central Huijin, a unit of China’s sovereign wealth fund, started acquiring stock in Industrial & Commercial Bank of China Ltd., China Construction Bank Corp., Agricultural Bank of China Ltd. and Bank of China Ltd. yesterday, according to a statement on its website.
On Sept. 18, 2008, Central Huijin announced it would buy shares of ICBC, Construction Bank and Bank of China, spurring a 21 percent rally for the Shanghai Composite Index within a week, according to data compiled by Bloomberg.
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