The state-run Central Huijin Investment company, a subsidiary of China’s sovereign wealth fund, has begun purchasing shares in the country’s four biggest banks following record declines in share valuations, Bloomberg reported. Central Huijin began purchasing stock on Monday in Industrial & Commercial Bank of China (601398.SH, 1398.HKG), China Construction Bank (0939.HKG), Agricultural Bank of China (601288.SH, 1288.HKG) and Bank of China (3988.HKG). According to statements by the banks to their respective stock exchanges, Central Huijin has already bought 14.6 million Shanghai-listed A-shares in ICBC, 7.38 million renminbi-denominated shares of China Construction Bank, 39.1 million shares in AgBank and 3.5 million shares in Bank of China. The fund said it will continue conducting “market-related operations” without giving specifics, but lenders said they expect Central Huijin to continue increasing its stakes over the next year. The MSCI China Financials Index has lost 36% of its value so far this year due to concerns that many of the US$3.5 trillion in new loans made under China’s stimulus package beginning in 2008 may go bad as growth slows.