Early this morning, the People's Bank of China and the Central Huijin Company made important statements. Central Huijin has made it clear that it is in the "national team" in the capital market and plays the role of a quasi-"equalization fund". The central bank said it would provide sufficient relending support to Central Huijin if necessary.
Huijin is responsible for the investment, the central bank has pledged to give money, and the Chinese version of the equalization fund has surfaced, which has helped to ease market worries and boost market confidence.
Recently, the U.S. government's indiscriminate tariffs have triggered sharp volatility in global markets. On April 7, the market ushered in "Black Monday", and A-shares fell sharply. At the end of the day, Central Huijin announced that it was firmly optimistic about the development prospects of China's capital market, fully recognized the value of the current A-share allocation, and said that it had increased its holdings of ETFs again and would continue to increase its holdings in the future.
For a long time, the "national team", which is dominated by large funds such as Central Huijin, has been regarded as the backbone of the market. Previously, Central Huijin has repeatedly made moves at important moments to increase its holdings in the secondary market.
This time, in addition to Central Huijin, a number of central enterprises have increased their holdings of Chinese stock assets. China Chengtong and China Guoxin increased their holdings of ETFs and shares of central state-owned enterprises through their subsidiaries, and seven listed companies under China Merchants Group collectively issued announcements planning to speed up the implementation of share repurchase plans. More buyback announcements are being released one after another.
At the critical moment, the "national team" made a move, firmly optimistic about the development prospects of China's capital market, and released a strong signal to stabilize the market. (Reporter Liu Yujia, Liu Hui)
