Huijin's move aims to buoy investor trust

Central Huijin Investment Co, a unit of China Investment Corp, would continue to increase its holdings in the nation's three largest banks over the next 12 months - a move which, analysts said, was a clear signal to stabilize the market and bolster investor confidence.

The $300-billion sovereign wealth fund would also continue to increase its holdings in the banks by buying shares from the open market over the next 12 months, according to a Huijin statement yesterday.

"The move is a clear indication that the government is trying to stabilize the market after the benchmark Shanghai Composite Index fell 6.1 percent in the third quarter, the worst performance among the largest emerging markets, and at a time when the long-awaited Growth Enterprise Board (GEB) is to be launched later this month," said Lu Junlong, analyst, China Finance Online, a NASDAQ-listed finance group.