Central Huijin Investment, a unit of China’s US$1.2 trillion sovereign wealth fund, bought exchange-traded funds (ETFs) on Monday, intervening in the nation’s stock market that is reeling from the mayhem inflicted by reciprocal tariffs from the US.
The company is “firmly” positive on the outlook of China’s capital markets and fully acknowledges the allocation values of A shares, or the yuan-denominated stocks trading on China’s onshore exchanges, the statement said.
The state buying was the first move by Beijing to mitigate the fallout from the US’ full-blown trade war, which has swept across the global markets on jitters about a recession for the global economy. State intervention could be frequently seen this year, after policymakers pledged to stabilise the nation’s financial markets in a government work report approved by lawmakers last month.
The biggest four ETFs tracking the underlying CSI 300 Index experienced a spike in combined daily turnover to more than 50 billion yuan (US$6.8 billion) on Monday, suggesting Central Huijin could be behind the movement.
