Central Remittance: Has full confidence and sufficient ability to resolutely maintain the smooth operation of the capital market

The Zhitong Finance App learned that the relevant person in charge of the Central Huijin Company answered questions from reporters regarding the April 7, 2025 announcement. The relevant person in charge said that the Central Huijin Company will continue to play a good role as a “stabilizer” of the capital market to effectively calm abnormal market fluctuations, and will act decisively when it is time to take action. In the next step, Central Huijin will firmly increase its holdings of ETFs in various market styles, increase its holdings increase efforts, and increase its holdings structure in a balanced manner. Central Huijin Company has full confidence and sufficient ability to resolutely maintain the smooth operation of the capital market.

The original text is as follows:

The relevant person in charge of the Central Huijin Company answered questions from reporters on the April 7, 2025 announcement

Q: What is the position and role of Central Huijin in maintaining the stability of the capital market?

A: Central Huijin Investment Co., Ltd. (hereinafter referred to as Central Huijin Company) is a wholly state-owned company and is currently a controlling shareholder of more than 20 financial institutions. Central Huijin has always been an important strategic force in maintaining the stability of the capital market. It is a “national team” in the capital market and plays the role of a “leveling fund”. Since 2008, the Central Huijin Company has participated in maintaining the stability of the capital market many times, actively improving the internal stability of the capital market.

Q: How does Central Huijin view the development prospects of China's capital market?

A: Central Huijin is firmly optimistic about the development prospects of the capital market; it is fundamentally optimistic about the bright future of the Chinese economy. Currently, China's high-quality development is progressing steadily, new quality productivity is booming, the foundation for continued economic recovery is more stable, and the steady and healthy development of the capital market is supported by strong fundamentals. In particular, since the Politburo meeting of the Central Committee introduced a package of incremental policies on September 26, 2024, the capital market has shown positive and profound changes. As a long-term institutional investor, Central Huijin will continue to adhere to the concept of long-term investment and value investment, and actively support the healthy development of the capital market.

Q: How does Central Huijin view the current A-share allocation value?

A: Central Huijin fully recognizes the value of the current A-share allocation. As the comprehensive reform of capital market investment and financing progresses further, the quality of A-share listed companies has steadily improved, the share of listed companies representing new quality productivity and technological innovation continues to rise, the attractiveness of A-share core assets continues to increase, and the overall valuation is at a relatively low level in history. Central Huijin will increase its allocation efforts to give full play to the role of patient capital and long-term capital.

Q: What are the sources of funding for Central Huijin to participate in maintaining the stability of the capital market?

A: First, it has strong assets. As a state-owned financial capital trusteeship management agency, the Central Huijin Company operates steadily and has a healthy balance sheet.

Second, the cash flow is sufficient and stable. Central Huijin receives stable cash dividends every year, and the amount of its own capital that can be used is large.

Third, financing channels are unobstructed and efficient. After years of development, the Central Huijin Company has established mature and stable market financing channels covering the short, medium and long term, and can also receive liquidity support from the People's Bank of China.

Q: What are Central Huijin's plans to maintain the current stability of the capital market?

A: Central Huijin will continue to play a good role as a “stabilizer” of the capital market to effectively calm abnormal market fluctuations, and will act decisively when it is time to take action. In the next step, Central Huijin will firmly increase its holdings of ETFs in various market styles, increase its holdings increase efforts, and increase its holdings structure in a balanced manner. Central Huijin Company has full confidence and sufficient ability to resolutely maintain the smooth operation of the capital market.

This article was selected from “Central Huijin Company Official Website”; Zhitong Finance Editor: Xu Wenqiang.