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Major investors are showing mixed sentiments toward China International Capital Corporation, with some reducing their holdings while others increase their stakes. Recently, internet giant Tencent Holdings sold part of its shares in the prominent Chinese investment bank, while two large asset management firms, one based in the US and the other in China, added to their positions.
Tencent reduced its ownership by selling 4.96 million shares on July 25 at an average price of HKD21.26 (about USD2.71) each, netting roughly HKD105 million (approximately USD13.3 million). This transaction lowered Tencent’s ownership from 11.01% to 10.75%.
Meanwhile, around the same time that Tencent was trimming its stake, BlackRock, the world’s biggest asset manager, and E Fund, a major Chinese mutual fund company, were increasing their investments.
BlackRock invested around HKD25.5 million (roughly USD3.2 million) on July 22 to buy 1.26 million shares at an average price of HKD20.21 (around USD2.60) per share. This purchase raised its ownership in CICC to 5.01% from 4.94%, according to filings with the Hong Kong stock exchange made on July 29.
E Fund followed suit on July 25, acquiring 7.14 million shares at an average of HKD21.44 (about USD2.73) each, totaling an investment of HKD153 million (around USD19.5 million). This purchase increased E Fund’s stake in the bank to 5.13% from 4.76%.
The fund’s buying spree might have been partially driven by passive investment strategies through exchange-traded funds (ETFs). E Fund reportedly purchased holdings in the Hong Kong-listed stocks of seven other brokerage firms, including China Securities and China Merchants Securities, as per reports on July 28 and 29. These holdings are typically maintained within a narrow range of 5% to 7%, consistent with ETF investment practices.
Recently, CICC projected significant growth across all segments for the first half of the year, anticipating net profit to increase between 55% and 78% compared to the previous year, reaching between CNY3.4 billion (about USD471.6 million) and CNY3.9 billion.
In the previous year, the bank’s largest shareholder was China’s sovereign wealth fund, Central Huijin Investment, holding 66.2% of its Hong Kong shares, which amounted to 40.1% of the company’s total share capital. Tencent ranked as the second-largest stakeholder, owning 11.3% of its Hong Kong shares and 4.4% of its total shares, while Alibaba was the third-largest shareholder with a 10.6% stake in Hong Kong shares and 4.2% overall.
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