China: Social Security Fund to sell its PICC shares: worth approximately 111.7 billion yen
Chinese stock market:
In the beginning of July, the stock market appears to be in full swing, with expectations for a full-scale economic recovery.
The closing price of Shanghai Composite Index on July 9 was 3450.59, which is 15.6% higher than the end of June.
China People’s Insurance Group (PICC) Disclosure:
Under such circumstances, news of concern ran through the Chinese market.
China People’s Insurance Group (PICC)
“The National Social Security Fund will sell a large amount of PICC shares.”
China: National Social Security Fund
The National Social Security Fund is PICC’s second largest shareholder.
The National Social Security Fund has stated that it will sell up to 2% of its outstanding shares.
When calculated at the current stock price level, its value is equivalent to about 7.3 billion yuan (about 111.7 billion yen).
Chinese market officials:
About sale announcement at this timing
“It shows the government’s intention to curb the recent overheating of the market,” he said.
Stock Analyst:
The PICC A strain is overvalued.
It is becoming a level that cannot explain the difference from H-shares.
It may have led to this move.
Translation:
Stock A: Traded on the Shanghai/Shenzhen stock exchange. RMB-denominated stocks,
H-shares: traded on the Hong Kong Stock Exchange. Hong Kong dollar-denominated stock
“Zaishin” | Toyo Keizai Online
https://toyokeizai.net/articles/-/362536?display=b
About the National Council for Social Security Fund
http://www.ssf.gov.cn/Eng_Introduction/201206/t20120620_5603.html
National Council for Social Security Fund – Company Profile and News – Bloomberg Markets