2024.0413

Number of words in this article:In 1997, the reading time was about 3 minutes

introduction：自中央汇金去年10月开启增持至4月12日，四大行A股股价均实现了双位数涨幅。

** Author| ** First Finance Qi Ning

This Friday (April 12), the capital market ushered in heavy news. The third capital market "National Nine Articles" was introduced and upgraded after 10 years. On the same day, four major state-owned banks successively disclosed the increase in Central Huijin's holdings in the past six months. On October 11 last year, Central Huijin stepped in to increase its holdings in the four major banks, and plans to continue to increase its holdings in the secondary market in its own name within six months from the date of the increase.

On the afternoon of April 12, China Construction Bank issued an announcement stating that it had recently received a notice from Central Huijin that as of April 10, 2024, Central Huijin had increased its holdings of the bank's A shares by 71.451 million shares, accounting for approximately 0.03% of the bank's total share capital; Central Huijin held a total of 142.858 billion shares of the bank (including 267 million A shares and 142.59 billion H shares), accounting for approximately 57.14% of the bank's total share capital.

Bank of China also issued an announcement on the same day saying that the bank had recently received a notice from Central Huijin that as of April 10, Central Huijin had increased its holdings of the bank's A shares by more than 330 million shares through the trading system of the Shanghai Stock Exchange, accounting for approximately 0.11% of the bank's total share capital; Central Huijin holds approximately 188.792 billion A shares in the bank, accounting for approximately 64.13% of the bank's total share capital.

Agricultural Bank of China also recently received a notice from Central Huijin. As of April 10, Central Huijin has increased its A-shares of the bank through the trading system of the Shanghai Stock Exchange by 401 million shares, accounting for approximately 0.11% of the bank's total share capital; Central Huijin holds a total of 140.489 billion A-shares of the bank, accounting for approximately 40.14% of the bank's total share capital.

Industrial and Commercial Bank of China also announced on the evening of the 12th that as of April 10, Central Huijin had increased its holdings of the bank's A shares by approximately 287 million shares through the trading system of the Shanghai Stock Exchange, accounting for approximately 0.08% of the bank's total share capital; Central Huijin held a total of 124.005 billion A shares of the bank, accounting for approximately 34.79% of the bank's total share capital.

Based on this calculation, in the past six months, Central Huijin has increased its holdings of nearly 1.1 billion shares in the four major banks. All banks emphasized in the announcement that Central Huijin will continue to support the bank's long-term steady development.

Central Huijin's full name is "Central Huijin Investment Co., Ltd." and is a wholly state-owned company established with funding from the state in accordance with the "Company Law of the People's Republic of China." Official information shows that Central Huijin Company was established in December 2003 and is headquartered in Beijing. It represents the state in exercising its rights and obligations to investors of key financial enterprises such as state-owned commercial banks in accordance with the law.

In September 2007, the Ministry of Finance issued special treasury bonds, purchased the entire equity of Central Huijin from the central bank, and injected the above equity into China Investment Corporation (hereinafter referred to as "CIC") as part of its capital contribution to China Investment Corporation. The important shareholder responsibilities of Central Huijin Company are exercised by the State Council, and the members of its board of directors and supervisory boards are appointed by the State Council and are accountable to the State Council.

In accordance with the authorization of the State Council, Central Huijin Company conducts equity investment in key state-owned financial enterprises, and exercises investor rights and fulfills investor obligations over key state-owned financial enterprises on behalf of the state in accordance with the law within the limit of the amount of capital contribution, so as to maintain and increase the value of state-owned financial assets. Central Huijin does not carry out any other commercial business activities and does not interfere in the daily business activities of key state-owned financial enterprises it controls.

On October 11 last year, Central Huijin increased its stake in the four major banks after eight years. On the same day, it increased its stake in Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China by 27.61 million shares, 18.38 million shares, and 37.2722 million shares respectively through the trading system of the Shanghai Stock Exchange., 24.88 million A shares, and plans to continue to increase its stake in each bank in the secondary market in its own name in the next six months (counting from the date of this increase).

Before this increase, Central Huijin held 123.718 billion shares of ICBC (34.71%), 140.087 billion shares of Agricultural Bank (40.03%), 188.462 billion shares of Bank of China (64.02%), and 142.786 billion shares of China Construction Bank (57.11%).

Based on the closing price on October 11 last year, Central Huijin's increase in its holdings in the four major banks cost a total of approximately 477 million yuan in a single day. Looking back at history, Central Huijin increased its holdings of bank shares many times in 2008, 2009, 2011, 2012, 2013, and 2015 respectively. After increasing its holdings, the secondary market received good feedback.

Among them, the most recent collective increase in holdings was in 2015, when the A-share market continued to fall from a high of 5,178.19. On the evening of August 19 of that year, the four major banks collectively announced that they received a notice from the shareholder Central Huijin on the 18th. The latter recently transferred 1.014 billion shares and 1.255 billion shares of ICBC, Agricultural Bank of China, and China Construction Bank respectively through an agreed transfer method. 100 million shares, 1.810 billion shares, and 497 million A shares, calculated based on the closing price of the day, the total cost was close to 20 billion yuan.

Regarding the rare move of Central Huijin last year, analysts generally said that it will help boost market confidence, accelerate the establishment of the market bottom, and catalyze the financial sector. On the evening of the same day, FTSE China's A50 index futures rose rapidly. The next day, all three major A-share stock indexes rose. The Shanghai Composite Index opened higher and broke through the 3100-point mark. Major financial sectors such as insurance, banking, and brokerage companies collectively rose that day.

Since Central Huijin started increasing its holdings in October last year to April 12 this year, the A-share prices of the four major banks have all achieved double-digit increases. Among them, Bank of China has increased by more than 20%, and Agricultural Bank of China, Industrial and Commercial Bank of China, and China Construction Bank have increased by 18.56%, 13.68%, and 12.3%, respectively. During the same period, Bank of Communications also rose by 13.52%, ranking first among its peers. During the same period, Postal Savings Bank's range share price fell by 6.69%.

During this period, the positive news boosted and the market's strong risk aversion sentiment. The stock prices of major state-owned banks, which had been boosted by factors such as China Special Valuation Market, low valuations, and high dividends in the early period, continued to hit new highs. Throughout last year, the share prices of Bank of China and Agricultural Bank of China rose by more than 33%, leading the entire banking sector. China Construction Bank and Industrial and Commercial Bank of China rose by 23.16% and 17.37% respectively, and Bank of Communications and Postal Savings Bank rose by 29.35% and-0.64% respectively.

As of the latest closing day on the 12th, the stock prices of A-shares of Industry, Agriculture, China and Construction Corporation were reported at 5.32 yuan/share, 4.28 yuan/share, 4.49 yuan/share, and 7.03 yuan/share respectively. The total market value was 1.75 trillion yuan, 1.46 trillion yuan, 1.19 trillion yuan, and 1.11 trillion yuan respectively., a total increase of approximately 666.7 billion yuan compared with six months ago, of which the total market value of A-shares increased by approximately 527.3 billion yuan.

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