China’s sovereign wealth fund, Central Huijin Investment, has recently raised its ownership in four of the country’s largest banks. This strategic move aims to restore confidence in China’s stock market.

The shares of Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and China Construction Bank experienced a rise ranging from 2.43% to 4.73% in early trading on Thursday. Simultaneously, the broader CSI 300 index saw a 0.69% increase.

For the first time since 2015, Central Huijin has increased its stake in each of these banks by 0.01 percentage point. The sovereign wealth fund has also declared its intention to further increase its holdings in these banks over the next six months, as confirmed by recent filings.

Hao Hong, the chief economist of Grow Investment Group, stated that this purchasing activity by Huijin sends a strong top-down signal and helps reinforce market confidence.

China’s stock markets have faced uncertainty due to the ongoing turmoil in the real estate sector, particularly with struggling property giants like Evergrande and Country Garden grappling with debt repayment. As a result, the CSI 300 has experienced a decline of nearly 5% this year.

Attention is now focused on the release of China’s third-quarter GDP data scheduled for next week, as investors eagerly anticipate its impact on the market.