Beijing steps up financial ‘master plan’ with major asset reshuffle.
China’s Ministry of Finance has transferred its stakes in a group of financial firms to a government-controlled fund as Beijing steps up its push to overhaul the financial sector.
The asset reshuffle will allow Central Huijin Investment – a subsidiary of China’s sovereign wealth fund, China Investment Corporation – to take controlling stakes in five companies, which include three national asset management firms.
The move is part of Beijing’s push to improve asset quality in the financial system, analysts said, but it has also raised market expectations of further government measures to stabilise the stock market and consolidate the securities industry.
Beijing has been encouraging mergers and acquisitions in the financial sector as part of a strategy to create a group of world-class Chinese investment banks.
Source: SCMP
