Central Huijin Investment, a Chinese state fund, significantly bolstered the country's stock market in the first quarter by purchasing blue-chip stocks worth over $41 billion, as revealed by the latest quarterly reports of various funds.
During this period, Central Huijin invested at least 300 billion yuan ($41.42 billion) in exchanged-traded funds (ETFs), including Huatai-PB CSI300 ETF, E Fund CSI300 Index ETF, Harvest CSI 300 ETF, ChinaAMC CSI 300 ETF, and ChinaAMC China 50 ETF.
These purchases played a crucial role in lifting China's CSI300 blue-chip index by approximately 14% from its five-year low in February. Alongside market-friendly policies and changes in China's top securities regulator, these investments contributed to the market's recovery.
In early February, Central Huijin announced an expansion of its investment scope in Chinese ETFs, emphasizing its commitment to ensuring the stability of China's capital markets.
Throughout the quarter, Central Huijin purchased significant units of various ETFs, including 26.3 billion units of Huatai-PB CSI300 ETF, valued at approximately 87 billion yuan ($12.01 billion), as per Reuters calculations. Additionally, the fund added around 73 billion yuan ($10.08 billion) of E Fund CSI300 Index ETF and 53 billion yuan ($7.32 billion) of Harvest CSI 300 ETFs.
The market had speculated about the involvement of state institutions in supporting the market. S&P Global Market Intelligence noted substantial flows of over $17 billion into Chinese-domiciled ETFs tracking the CSI 300 in January. Similarly, Goldman Sachs observed significant buying activity of domestic ETFs by suspected "national team" state-affiliated investors.
Central Huijin's purchases also included $7.73 billion in ChinaAMC CSI 300 ETF and $4.97 billion in ChinaAMC China 50 ETF during the first quarter, as per reports from these ETFs.
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