Chinese stocks have been front-running talk of more stimulus and help. Now there are multiple reports of comments from China Central Huijin Investment and a statement saying they will increase the investment of China stock ETFs and are determined to safeguard the stable operation of the market.
China Central Huijin Investment Ltd., often simply referred to as Central Huijin, is a state-owned investment company in China. It operates as a subsidiary of the China Investment Corporation which is the sovereign wealth fund of China. It's job is to make equity investments in key state-owned financial institutions in China.
One report said the statement said it has expanded the range and holdings of its ETFs to help stabilize the markets, while another said it will increase investment in China stock ETFs, which sounds like more buying rather than broader buying.
The statement also said: We fully recognize A-Shares' allocation value, have expanded the scope of holds of ETFs.
Yesterday, Chinese large banks ripped higher so perhaps that's some of the move.
Chian stock futures are now higher with large-cap stocks leading the way. I don't think we need to read too much between the lines here because these orders are all coming from the highest levels and the message is: Buy Chinese stocks.
Update: China Securities Regulatory Commission said it will continue to coordinate and guide public funds, private funds, securities companies, social security funds, insurance organizations, and other types of institutional investors to enter the market more vigorously, introducing more incremental funds for the A-share market, and making full efforts to maintain stable market operation.
