China's state-led funds executed the heaviest buying since the April 2025 trade war rout, with inflows into nine actively traded ETFs reaching 128.7 billion yuan ($19 billion) last week. Authorities ramped up efforts to stem a market freefall, marking the most significant intervention since Beijing deployed a slew of actions to prop up investor sentiment during the previous trade conflict. While analysts had previously warned such intervention would be insufficient to reverse the negative spiral, signs are emerging that the buying is helping ease the decline.
Chinese stocks swung into gains late Friday as turnover in favored ETFs picked up pace, with the Chi Next Index jumping 4.2% and snapping a nine-session losing streak. The tech-heavy gauge pared an early loss to trade 1.7% lower as of the mid-day break. The national team's aggressive buying signals a renewed commitment to stabilizing markets amid ongoing volatility.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing