The "national team" shot! Central Huijin Company increased its holdings in the four major banks, what is the signal?

On the evening of October 11, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank respectively issued announcements saying that they had received notices of increasing their holdings by their controlling shareholder, Central Huijin Investment Co., Ltd. (hereinafter referred to as Huijin Company). Huijin said that it intends to continue to increase its holdings in the secondary market in its own name in the next 6 months.

Yang Delong, chief economist of Qianhai Open Source Fund, said that the current valuation of bank stocks is generally low, and Huijin's continuous investment of "real money" will help the valuation repair of bank stocks and is of great significance to the A-share market.

Huijin Company increased its holdings of the shares of the four major banks, with a market value of 477 million yuan

Specifically, Huijin Company increased its holdings of about 27.612 million shares of ICBC, and held about 123.745 billion A shares of ICBC after the increase, with a shareholding ratio of 34.72%; increased its holdings of 37.2722 million shares of Agricultural Bank of China, and held about 140.125 billion A shares of Agricultural Bank of China after the increase, with a shareholding ratio of 40.04%; increased its holdings of Bank of China by 24.8879 million shares, and held about 188.486 billion A shares of Bank of China after the increase, with a shareholding ratio of 64.03%; It increased its holdings of about 18.38 million shares of China Construction Bank, and held about 142.805 billion shares of China Construction Bank after the increase, with a shareholding ratio of 57.12%.

Based on the closing prices of the four major banks on October 11, Huijin Company increased its holdings of Industrial and Commercial Bank (closing price 4.72 yuan / share), Agricultural Bank of China (closing price 3.65 yuan / share), Bank of China (closing price 3.77 yuan / share) and Construction Bank (closing price 6.34 yuan / share) of about 130 million yuan, 136 million yuan, 94 million yuan and 117 million yuan, totaling about 477 million yuan.

"At present, the net breaking rate of A-share listed banks is still high, and increasing its holdings in the four major banks may be just the beginning, and Huijin's commitment to continue to increase its holdings of the A-shares of the four major state-owned banks sends a strong signal to the market to 'continue to invest' and protect the market." Yang Delong said that this will play an important positive role in stabilizing and boosting investor confidence, and will also help the mainland capital market to further healthy and sustainable development.

In 2015, Huijin Company collectively increased its holdings in four major banks. On the evening of August 19, 2015, ICBC, Agricultural Bank of China, Bank of China and China Construction Bank collectively announced that they had received a notice from the controlling shareholder Huijin Company that Huijin Company had transferred about 1.014 billion shares, 1.255 billion shares, 1.810 billion shares and 497 million shares of the above four major banks respectively.

Expert: Huijin increased its holdings as a major shareholder, which is good for the bank's asset quality and profit prospects

According to the official website of Huijin Company, the company is a wholly state-owned company funded and established by the state in accordance with the Company Law of the People's Republic of China, and according to the authorization of the State Council, it makes equity investment in key state-owned financial enterprises, and exercises the rights of investors and fulfills the obligations of investors on behalf of the state in accordance with the law on behalf of the state in accordance with the law to maintain and increase the value of state-owned financial assets. Central Huijin Corporation does not carry out any other commercial business activities and does not interfere in the daily operation activities of key state-owned financial enterprises controlled by it.

As of December 31, 2022, Huijin's holding institutions include China Development Bank, Industrial and Commercial Bank of China Co., Ltd., Agricultural Bank of China Co., Ltd., Bank of China Co., Ltd., China Construction Bank Co., Ltd., China Everbright Group Co., Ltd., China Export and Credit Insurance Corporation, China Reinsurance (Group) Co., Ltd., China Jianyin Investment Co., Ltd., China Galaxy Financial Holding Co., Ltd., Shenwan Hongyuan Group Co., Ltd., Xinhua Life Insurance Co., Ltd., China International Capital Corporation Limited, Hengfeng Bank Co., Ltd., Hunan Bank Co., Ltd., CSC Securities Co., Ltd., China Galaxy Asset Management Co., Ltd., Guotai Junan Investment Management Co., Ltd.

"As a major shareholder, Huijin Company is more strategic to increase its holdings of bank shares, and the increase in holdings of major shareholders will help to increase the bank's capital and improve its operating capabilities." Zhou Maohua, macro researcher of the financial market department of China Everbright Bank, said that the increase in the holdings of bank shares by major shareholders reflects the recognition of the bank's operating conditions and their increased confidence in its future development. On the other hand, the increase in holdings by major shareholders has helped to enhance investor confidence.

Attached: Announcements of the four major banks

ICBC announced that Huijin Company increased its holdings of 27611989 A-shares of the Bank through the trading system of the Shanghai Stock Exchange on October 11, 2023. Before this increase, Huijin Company held 123717852951 A shares of the Bank, accounting for about 34.71% of the total share capital of the Bank. After this increase, Huijin Company holds 123745464940 A shares of the Bank, accounting for about 34.72% of the total share capital of the Bank. Huijin intends to continue to increase its holdings in the secondary market in its own name in the next 6 months (from the date of this increase).

Agricultural Bank of China announced that Huijin Company increased its holdings of 37272200 A-shares of the Bank through the trading system of the Shanghai Stock Exchange on October 11, 2023. Before this increase, Huijin Company held 140087446351 A shares of the Bank, accounting for about 40.03% of the total share capital of the Bank. After this increase, Huijin Company holds 140124718551 A shares of the Bank, accounting for about 40.04% of the total share capital of the Bank. Huijin intends to continue to increase its holdings in the secondary market in its own name in the next 6 months (from the date of this increase).

Bank of China announced that on October 11, 2023, Huijin Company increased its holding of 24887900 A shares of the Bank through the trading system of the Shanghai Stock Exchange (the "Increase"). Before this increase, Huijin Company held 188461533607 A shares of the Bank, accounting for about 64.02% of the total share capital of the Bank. After this increase, Huijin Company holds 188486421507 A shares of the Bank, accounting for about 64.03% of the total share capital of the Bank. Huijin intends to continue to increase its holdings in the secondary market in its own name in the next 6 months (from the date of this increase).

China Construction Bank announced that on October 11, 2023, Huijin Company increased its holdings of 18379960 A shares of the Bank through the trading system of the Shanghai Stock Exchange (hereinafter referred to as the "increase"). Before this increase, Huijin Company held a total of 142786436627 shares of the Bank (including 195941976 A shares and 142590494651 H shares), accounting for about 57.11% of the total issued share capital of the Bank. After this increase, Huijin Company holds a total of 142804816587 shares of the Bank (including 214321936 A shares and 142590494651 H shares), accounting for about 57.12% of the total issued share capital of the Bank. Huijin intends to continue to increase its holdings in the secondary market in its own name in the next 6 months (from the date of this increase).

Responsible editor: Ren Haopeng | Reviewer: Zhang Yipeng | Reviewed: Li Zhen | Supervisor: Wan Junwei