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State Funds Step In as China Stocks Hit 10-Week Drop

Bloomberg Markets •
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China’s benchmark stock index has suffered a record 10‑week losing streak, prompting state‑backed funds to increase their market presence. Bloomberg data shows inflows into exchange‑traded funds favored by the National Team surged last week to the highest level since July, with large institutions buying heavily near the close. The CSI 300 Index fell 3.4% over five sessions through Friday, now down about 17% from its June peak and nearing a technical bear market. While China’s third‑quarter growth accelerated more than expected, Chinese firms are the biggest losers in the faltering global AI trade, and the Star 50 Index has dropped nearly 40% this half‑year. Beijing’s July market‑stabilization push, involving regulators, state investors, insurers and asset managers, continues as analysts note the latest inflows may help restore confidence and stabilize expectations.

Key Data: 10‑week losing streak, 3.4% CSI 300 drop, 17% decline from June peak, 40% Star 50 plunge.

Entities: National Team, CSI 300 Index, Star 50 Index, China Securities analysts (Yao Ziwei), Beijing regulators.

Expert Insight: The large‑scale fund influx offers institutions a chance to build A‑share positions on weakness while bolstering investor confidence.

Internal Link Anchor: China Market Support Strategy

Source: Bloomberg Markets · Summarized by HeadlinesBriefing