From recapitalising rural banks to propping up the stock market, Central Huijin, an arm of China’s sovereign wealth fund, has supported the country’s financial system since its launch two decades ago. But over the past year, the scale of its interventions has thrust it into the spotlight.
Central Huijin’s holdings of exchange traded funds soared past Rmb1tn ($140bn) in 2024, a seven-fold increase year on year, as the government ordered stimulus measures aimed at boosting the economy.
Beijing has made clear its desire to build bigger financial institutions to help its already state-dominated financial sector navigate economic and market turmoil. Central Huijin, with both its direct buying and vast portfolio of firms, is a key component of this initiative.
During the escalation of the trade war with the US in April, Central Huijin openly pledged to support markets and, for the first time, described itself in a statement as a…
