A basket of eight exchange-traded funds favoured by the so-called national team saw record net inflow of 42 billion yuan Monday, amid Beijing’s coordinated efforts to stem an equities rout. An index of Chinese stocks listed in Hong Kong sank more than 13% on Monday, putting it into a bear market.
China’s state-backed funds are planning to buy local stocks in a bid to support the market, as an escalating trade war with the US erodes this year’s rally.
China Reform Holdings Corp. said it will spend 80 billion yuan ($14.78 billion) to increase holdings of shares in state-owned enterprises and technology firms as well as to buy exchange-traded funds. That followed word from sovereign funds Central Huijin Investment Ltd. and China Chengtong Holdings Group of equity purchases Monday.
