China's State Funds Boost Purchases on Stock Market Amid Record Decline
Leonid Mironov, portfolio manager at Gavekal Capital, believes that prolonged pressure on the technology sector will complicate capital raising for Chinese AI companies
The CSI 300 index has declined for ten consecutive weeks, marking a record losing streak.
According to Bloomberg calculations, inflows into exchange-traded funds (ETFs) favored by China's 'national team' reached a peak since July last week. There is no official data on the increase in purchases by state funds, but market participants link the scale and timing of the operations to Beijing's attempts to support stock prices.
China Securities identified signs of institutional investor activity in the operations: funds flowed into the largest ETFs tracking broad indices, and activity intensified before the market close. Since its June peak, the CSI 300 has fallen by approximately 17% and is approaching the threshold of a bear market—a decline of more than 20%.
Following the release of data showing China's GDP growth in the third quarter at 4.5% year-on-year, the index slightly increased by 0.1%.
