(Yicai) Oct. 12 -- Central Huijin Investment, a Chinese state-owned financial investment institution, has invested about CNY477 million (USD65.4 million) to increase its holdings in China’s four biggest state-owned commercial banks and promised to continue to buy in the next six months.

Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, and Bank of China announced their major shareholder’s stock buying news later yesterday, with the investment amount of each bank between CNY94 million (USD12.9 million) to CNY136 million.

The central government-controlled financial investment institution last increased its holdings in these banks in August 2015 when China’s stock market had just experienced a sharp market correction. On that occasion, the firm invested almost CNY20 billion (USD2.7 billion) to raise its stakes in these banks, and also invested another CNY6.1 billion (USD835.5 million) at the time on three other financial institutions, namely China Everbright Bank, New China Life Insurance and Shenwan Hongyuan Securities.

Central Huijin’s latest move sent a strong message to investors that the regulator cares about market stability and investors, it should enhance investor confidence in banking stocks as well as the performance of the overall stock market, Yang Delong, chief economist at First Seafront Fund Management, told Yicai.

In fact, after the announcements of the investment by the banks, the FTSE China A50 Index, a tradable index comprising the largest 50 stocks by market capitalization on the Chinese mainland market, soared 1.6 percent in after-hours trading yesterday.

ICBC’s shares [SHA: 601398] were trading up 1.7 percent at CNY4.80 (66 US cents) as of 11.00 a.m. in Shanghai today. The stocks of ABC [SHA: 601288] and CCB [SHA: 601939] rose 0.6 percent and 2.1 percent to CNY3.67 and CNY6.47. BOC [SHA: 601988] jumped 1.6 percent to CNY3.83. The benchmark Shanghai Stock Exchange Composite Index was up 0.81 percent in the early afternoon.

Established in December 2003, Central Huijin exercises investor rights and fulfills investor obligations for China’s central government to act as a major owner of China’s key state-owned financial enterprises, with the members of its boards of directors and supervisors appointed directly by China’s State Council.

At the same time, the institute does not carry out commercial business activities nor interfere with the daily business activities of the financial enterprises it controls.

There are 19 financial institutions directly controlled by Central Huijin, including seven banks. Its stakes in ICBC, ABC, CCB, and BOC were between 34.7 percent and 64 percent as of June 30.