China’s state investment fund allocated $41 billion to exchange-traded funds in the first quarter to support the stock market
In the first three months of the year, China’s state-owned investment company Central Huijin Investment bought 300 billion yuan ($41.42 billion) worth of shares in various exchange-traded funds (ETFs), buying a significant amount of high-quality stocks to support the country’s weakening stock market. took.
As noted in these funds’ most recent quarterly financial statements, ETFs purchased include Huatai-PB CSI300 ETF, E Fund CSI300 Index ETF, Harvest CSI 300 ETF, ChinaAMC CSI 300 ETF and ChinaAMC China 50 ETF.
These financial commitments were instrumental in the 14% increase in China’s CSI300 index of leading stocks, which hit a five-year low in February. This increase was helped by the government’s introduction of policies aimed at supporting the market and leadership changes at the primary securities regulator.
At the beginning of February, Central Huijin announced its intention to increase its holdings in China ETFs as part of its strategy to maintain the stability of the country’s financial markets.
The announcement comes as the CSI 300 index declines, pointing to concerns about the slow pace of China’s economic recovery and the inadequacy of the government’s economic support measures.
According to financial reports, Central Huijin purchased 26.3 billion shares of Huatai-PB CSI300 ETF, with a market value of about 87 billion yuan ($12.01 billion), and about 73 billion yuan ($10.08 billion) and 53 billion, respectively. It made significant increases in its holdings in the E Fund CSI300 Index ETF and Harvest CSI 300 ETF, with investments worth yuan ($7.32 billion).
In addition, Central Huijin invested $7.73 billion in the ChinaAMC CSI 300 ETF and $4.97 billion in the ChinaAMC China 50 ETF during the same time period.