China bets on equities in its domestic market. Central Huijin Investment, a public bank controlled by the China Investment Sovereign Fund, has acquired shares of some credit institutions in the country (Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China and China Construction Bank) and announced which intends to continue "with correlated market operations".
According to a Nomura analyst, "the Beijing government believes that the shares of its banks are cheap" and for this reason it has chosen to act. The aim is to stabilize the financial system after the Shanghai Stock Exchange hit a 30-month low in recent days.
