China's National Team Invests Heavily in Local Equities ETFs

China’s 'national team' of state-backed financial companies has invested Rmb410bn ($57bn) into local equities exchange traded funds this year, stabilizing the stock market. UBS estimates that ETFs tracking the CSI 300 Index have received over 75% of the inflows. Central Huijin Investment, part of China’s sovereign wealth fund, has joined in purchasing ETFs to boost the market. Goldman Sachs favors the domestic market due to policy support and evidence of national team buying. The CSI 300 index reported a 7% rise in February, and CIC has pledged to prioritize market stabilisation and risk management initiatives. The commitment follows a series of market-boosting measures to save the struggling stock market.