Central Huijin Investment Ltd. (Central Huijin), a Chinese state-owned investment company, has been ramping up its efforts to stabilize the market amid mounting international uncertainties.

Central Huijin primarily invests in A-shares through various channels, including Central Huijin itself, Central Huijin Asset Management, and special asset management plans, mainly holding stocks and index funds. With a substantial portfolio, its chosen targets have a significant impact on the capital market.

According to financial information provider Wind Info, by the end of the first quarter, Central Huijin was among the top ten shareholders of 165 listed companies, with a total shareholding value of 4.28 trillion yuan (about 590 billion U.S. dollars). In addition, it holds several index funds tracking A-share market, including the CSI 300, SSE 50, and ChiNext. By the end of the first quarter, the total value of these index funds exceeded 1 trillion yuan (about 140 billion U.S. dollars).

As a key strategic player in maintaining stability in the capital market, Central Huijin has taken decisive actions during market fluctuations.

On April 7, Central Huijin announced an additional purchase of exchange-traded funds (ETFs), marking its third announcement since October 2023 about buying or increasing its ETF holdings. It also reaffirmed its commitment to continuously increasing its holdings in the future to ensure the smooth operation of the capital market.

Recently, the China Securities Regulatory Commission said that Central Huijin is taking strong actions in stabilizing the market, with the People's Bank of China, the central bank, acting as a support. This is one of the most effective models in the world.

The central bank has expressed its firm support for Central Huijin to increase investments in stock market index funds when necessary, as well as provide ample re-lending support.

"Central Huijin has been steadily increasing its holdings, choosing targets that promote both market stability and the development of new quality productive forces. Its timely statements and increased investments have strengthened investor confidence, providing a vital boost for sustained stability and activity in the market. Looking ahead, the People's Bank of China will act as a solid support, offering ample liquidity to Central Huijin to better address overseas uncertainties that may disrupt the market," said Wang Kai, chief strategy analyst for Guosen Securities.