Bank of China's more than 2% Huijin remains confident of holding stability

The Chinese Bank of China, which has earlier said it plans to reduce the weighting of foreign exchange assets to cope with the global financial crisis, has opened 2.44% to HK $3.78 this morning, closing 15.14 million shares. The Bank of China (601988-CN) has also risen 1.51% to 4.7 yuan, or is buoyed by the latest announcement of Huijin's no reduction plan. Because in the central Huijin Company held 171.325 billion shares of restricted shares will be lifted, the latest statement of the central Huijin is not equal to the lifting of the ban, nor does it mean that Huijin to BOC and other state-owned key financial institutions have significant adjustment of shareholding policy. Huijin will still ensure the state's holding position in key state-owned financial institutions such as BOC. This eliminates the possibility that Huijin will reduce the number of Chinese banks, including BOC, and help to further enhance market confidence in such stocks.