On February 14, five major state-owned financial institutions simultaneously announced the transfer of shares to their new owner—Central Huijin Investment. Behind the announcement lies China’s accelerating financial market reforms and the deep foresight for risk prevention. Central Huijin has once again stepped into the spotlight, much like it did over 20 years ago when it was established in response to the reform of state-owned banks.
By the end of 2023, Central Huijin managed state-owned financial capital of 6.41 trillion yuan, a 9.4% increase from the beginning of the year. After the completion of the share transfers by the five financial institutions, Central Huijin will directly hold equity stakes in 24 financial institutions, including seven banks, nine comprehensive institutions, five insurance companies and three securities firms.
Industry insiders see this share transfer as a strategic expansion of Central Huijin’s financial map, reflecting the ongoing reform of the state-owned financial capital management system. Several senior regulatory officials and AMC executives told Caijing that this round of share transfers aims to promote the separation of administrative functions from operational functions and the separation of government and enterprise, further streamline property rights relationships, and enhance control to prevent financial risks.
