The South China Morning Post (may be gated) reported on China’s US$1.35 trillion sovereign wealth fund increasing its equity stakes in the nation’s four biggest banks:
- stoking speculation authorities are trying to shore up confidence in the market after an exodus of foreign funds and a slump in the local currency
- “This move, reminiscent of its actions during the 2015 Chinese equity market turmoil, signifies the government’s desire to maintain market stability,” Redmond Wong, China strategist at Saxo Capital Markets in Hong Kong, said in a note to clients.
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Central Huijin Investment which owns strategic stakes in local financial institutions. Bought additional domestic shares in:
- Industrial and Commercial Bank,
- Construction Bank,
- Bank of China
- and the Agricultural Bank of China
SCMP cited stock exchange filings.
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The USD gained broadly on Thursday, including against the offshore yuan:
This article was written by Eamonn Sheridan at www.forexlive.com. Source