(Yicai Global) July 14 -- Citic Securities will use CNY30 million (USD4.2 million) of its funds to invest in its stock-oriented collective hybrid asset management plan, China’s largest brokerage said yesterday.

The move is based on the company’s confidence in the healthy and stable development of China’s capital market, China Fund reported, citing Wei Lai, director of Citic Securities’ asset management equity investment. “With low market valuations currently, I hope that people can have more confidence in the market,” Wei was quoted as saying.

China’s A-share market has fallen in the past two months, with the Shanghai Composite Index dropping from 3,419 in May to 3,238 points as of the close today, having fallen as low as 3,150 at one point.

When the Shanghai Composite Index was at a low of around 2,900 in November 2022, Citic Securities announced that it would invest CNY50 million in its stock-oriented collective hybrid asset management plan.

Only Citic Securities among Chinese brokerages has announced a self-purchase plan for its equity products this year. Securities firms including Guotai Junan and Huatai Securities launched self-purchase plans after the market declined sharply last October.

Citic Securities had over CNY1.4 trillion (USD196.3 billion) in assets under management by the end of 2022.

Editor: Tom Litting