China's sovereign wealth fund has begun increasing its stake in the country's big banks, as Beijing looks to stabilise their share prices.
Central Huijin, the domestic arm of China Investment Corporation, bought shares in four major banks on Monday, said the official Xinhua news agency.
The share purchase is the first since the global financial crisis in 2009.
Analysts said the move was aimed at boosting investor confidence shaken by foreign markets and domestic policy.
Growth concerns
"They're showing confidence in the banks, and support from the central government," said Victor Wang from Macquarie Securities.
China's benchmark Shanghai Composite Index has fallen 17% this year, according to the Reuters news agency.
Although Chinese growth continues to show strength, analysts say investors are concerned about the eurozone debt crisis and a slowdown in the US economy.
Inflation is also a concern, currently near its highest level in three years.
Continuing support
The four Chinese lenders later gave details of the move by Central Huijin.
Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank Corporation and Bank of China said 39.1 million, 14.6 million, 7.4 million and 3.5 million of their Shanghai-listed shares were bought on Monday
Central Huijin is already the largest shareholder in the country's big lenders.
It also said in a statement to the Hong Kong Stock Exchange that it would continue to increase its holdings in the four banks over the next year.
