Another day and another attempt to prop up the Chinese stock market ahead of theAgricultural Bank of China IPO, and the expected avalanche of cash calls from the banking sector. ($40bn of issuance is needed to bolster balance sheets depleted by last year’s loan splurge).
This time it’s the National Social Security Fund (NSSF) which has hatched a plan to increase its holding of Chinese stocks to 30 per cent by the end of the year.
The ‘China Take‘ is the NSSF wants to take advantage of the incredible opportunities this year’s stock market rout in Shanghai have thrown up. Indeed, the Shanghai composite index has fallen 22 per cent this year — one of the world’s worst performers — so opportunities abound.
But with $80bn of assets under management, it’s questionable what impact the NSSF can make.