Major Chinese Brokerages Initiate Stock Purchases Amid Policy Support

In a significant move to stabilize the market, several of China’s leading brokerage firms, including CITIC Securities, China International Capital Corporation (CICC), Guotai Junan, Haitong Securities, Galaxy Securities, and China Merchants Securities, have officially announced the commencement of stock purchases. This coordinated action follows the latest implementation of the Securities, Funds, and Insurance Companies Swap Facility (SFISF), a policy tool designed to inject liquidity and bolster confidence in the A-share market.

Financial experts, such as Yuan Chuang from Caixin Securities, have noted that this third operation of the SFISF marks a clear escalation in the government’s commitment to market stability. The participation of these major financial institutions is viewed as a strategic move to counteract recent volatility, often referred to in market circles as the ‘Black Friday’ effect. By increasing their holdings in A-share stocks and Exchange Traded Funds (ETFs), these brokerages are acting as a stabilizing force, effectively ‘buying the dip’ in a challenging economic environment.

Market analysts have highlighted the role of the ‘Huijin’ investment arm, which is actively supporting these efforts. The involvement of top-tier firms like CICC and Galaxy Securities in the third batch of swap facility funding demonstrates a unified front among state-backed financial entities. This initiative is not only about immediate market support but also serves as a signal to broader institutional and retail investors that there is a concerted effort to maintain market integrity and long-term growth.

The official announcements from these giants have been met with cautious optimism by the investment community. While the market continues to face global and domestic headwinds, the proactive stance of these major brokerages provides a layer of institutional support that is expected to mitigate downward pressure. As these firms continue to execute their purchase plans, market participants are closely watching for signs of sustained recovery and improved investor sentiment in the coming trading sessions.

Sources: Tonghuashun Finance

Aggregated summary. Original: 同花顺财经