ad1

CBN丨Keyequitytransferofstate-ownedfi

Hieveryone.I’mStephanieLI. Comingupontoday’sprogram Here’swhatyouneedtoknowabo...

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Here’s what you need to know about China in the past 24 hours

The A-share market rose on Monday as news that Central Huijin Investment, an arm of China's sovereign wealth fund, is set to take control of four major State-owned financial institutions, further strengthening investor sentiment.

The move, according to analysts, will enhance the ability of State-owned distressed asset managers to resolve risks and improve the performance of the so-called "national team" — a group of State-backed financial institutions acting as a stabilizer of the stock market — to better perform its role, while igniting hopes of potential mergers among relevant investment banks.

On Friday, three State-owned bad debt managers — China Cinda Asset Management, China Orient Asset Management and China Great Wall Asset Management — along with China Securities Finance Corp, which provides margin financing to securities firms and supports the “national team,” announced that their controlling shareholder, the Ministry of Finance, will transfer its shares to Central Huijin Investment at no cost.

The announcements caused relevant stocks to surge on Monday, as Dongxing Securities, a subsidiary of China Orient Asset Management, went up 5.91 percent on Monday morning while Cinda Securities rose 8.99 percent.

This equity transfer marks a step in implementing the 2023 institutional reform plan, which calls for the separation of market-oriented entities managed by central financial regulatory authorities. As part of this reform, the Ministry of Finance will shift its focus from management to a supervisory role.

"The centralized and market-oriented management of asset management companies by Central Huijin would enhance the efficiency of State-owned financial capital allocation and strengthen risk control capabilities," said a CITIC Securities report.

With China Securities Finance also included in the equity adjustment, the "national team" is expected to achieve better coordination in making unified actions, the report said.

Following the equity transfers, Central Huijin will control six securities firms, including China International Capital Corp, China Galaxy Securities, Shenwan Hongyuan Securities, Cinda Securities, Dongxing Securities and Great Wall Glory Securities.

Greater Bay Area, Greater future

Next on industry and company news

Wrapping up with a quick look at the stock market

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

Presented by SFC

郑重声明:此文内容为本网站转载企业宣传资讯,目的在于传播更多信息,与本站立场无关。仅供读者参考,并请自行核实相关内容。

图文CHANNEL NEWS
12月22日晚,vivo发布了新一代S16系列手机,其中超大杯S16Pr...
日前,哈趣K1Pro投影仪正式发布,售价1599元,具备1000ANSI...
日前,小米发布了首款万兆路由器,售价1799元,不仅拥有企业级处理器,还...
日前,威刚发布UE800512GBU盘,容量为512G,符合USB3.2...