China confident of maintaining financial stability

China confident of maintaining financial stability



China is confident and capable of maintaining stable financial markets amid the global market turmoil, said Su Ning, vice governor of the People's Bank of China.
China's financial markets are stable with the banking system's liquidity at high levels, Su said at a forum over weekend. His remarks were published on the central government's website.
The international turbulence poses heightened risk to China's financial sector, but the large domestic market and the vitality of the domestic economy provides China the ability to meet the challenges, he said.
He noted that domestic consumption has contributed more to economic growth than before, while natural disasters and global economic troubles have not altered the fundamentals of the world's fastest expanding economy.


Huijin Increases Stake in Top Commercial Lenders

Chinese three largest commercial banks announced Tuesday that Central Huijin Investment Co., Ltd., an investment arm of the government, had increased its shareholdings of the three banks.
According to announcements released by the banks on Tuesday evening, Huijin has increased shareholdings of 2 million shares for each bank through shares purchase on the Shanghai Stock Exchange.
China Construction Bank (CCB) said that following the acquisition, Huijin holds 152,844,297,904 shares of the CCB (including 2,000,000 A-shares and 152,842,297,904 H-shares), representing approximately 65.405 percent, up from 65.4041 percent, of the total issued share capital of the bank.
The Industrial and Commercial Bank of China said Huijin now holds 118,008,174,032 shares in the bank after the acquisition, increasing its stake in the country's top lender from 35.3292 percent to 35.3298 percent.
The Bank of China said the government investment arm now holds 171,327,404,740 shares in the bank after the purchase, increasing its stake from 67.4937 percent to 67.4945 percent.
It is one of a package of moves by the government to stabilize the sliding stock market, including the recent cancellation of the stamp tax on stock purchases.
Huijin intends to continue to increase its shareholdings in the three banks on the secondary market within 12 months commencing from the date of this share acquisition, according to the banks' announcements.