China's government has been meddling in the markets by buying shares in the country's four big banks, a move analysts expect to continue until jitters about high interbank lending rates and concerns about the economic outlook ease.
Central Huijin Investment, which holds Beijing's investments in state-owned financial firms, bought shares in Industrial and Commercial Bank of China, Bank of China, China Construction Bank and Agricultural Bank of China, statements to the stock exchange on Monday showed.
This marks the latest effort to bolster confidence in the benchmark Shanghai stock index, which last week fell to its lowest level since mid-December.
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"There's no question that the Chinese banking system is supported by the government, which controls Huijin. So if it needs to do more it will," Uwe Parpart, the head of research at Reorient Financial Markets told CNBC Asia's