China’s securities regulator, the China Securities Regulatory Commission (CSRC), announced on Tuesday its firm support for Central Huijin Investment Ltd. to intensify efforts in increasing holdings and expanding the scale of investments in the stock market.
“We will create more convenient conditions and smoother channels for its market operation,” the CSRC stated, emphasizing its commitment to facilitating Central Huijin’s market activities.
Currently, the valuation level of China’s A-share market is at a historically low point, highlighting significant medium- and long-term investment value, which has been fully recognized by investment institutions, including Central Huijin, according to a CSRC spokesperson.
The CSRC indicated plans to coordinate and guide various institutional investors—including public funds, private funds, securities companies, social security funds, insurance institutions, and annuity funds—to enter the market more vigorously. The regulator will also encourage and support listed companies to increase share repurchases and holdings, introduce more incremental funds into the A-share market, and spare no effort to safeguard the stable operation of the market.
Central Huijin, a state-owned investment company acting as an arm of China’s sovereign wealth fund, stated on Tuesday that it fully recognizes the current market allocation value of A-shares and has expanded its investment scope in exchange-traded funds (ETFs).
The A-share market refers to shares of mainland China-based companies traded on the Shanghai and Shenzhen stock exchanges, denominated in Chinese yuan. Central Huijin’s increased investment signals confidence in the domestic stock market and is expected to encourage other institutional investors to follow suit.
