Tag: Shanghai Stock Exchange

China Bails Out Its Banks

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Oct. 12 – Beijing has used the state-owned Huijin Sovereign Wealth Fund to purchase stocks in China’s four largest banks – Agricultural Bank of China, Bank of China, Industrial & Commercial Bank of China, and China Construction Bank – in moves made to support the share prices of each of the banks, as well as the markets overall. Huijin is now in the somewhat odd position of owning a controlling stake in each of China’s biggest banks.

Huijin has stepped in to support share prices as markets in Shanghai and Shenzhen have declined significantly over the year, while the banks themselves have been dealing with bad debt issues following Beijing’s policy of providing easy credit terms to support the economy during the Global Financial Crisis in 2008. Continue reading…

Asia Briefing Bookstore Catalogue 2013
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