Central Huijin Investment China State Fund Injects $41B into Markets

23 Apr, 2024

Central Huijin Investment China State Fund Injects $41B into Markets

Chinese state fund Central Huijin Investment actively intervened in the stock market during the first quarter, injecting at least $41 billion into blue-chip stocks, according to the latest reports from funds.

These investments primarily consisted of exchanged-traded funds (ETFs), including notable purchases such as the Huatai-PB CSI300 ETF, E Fund CSI300 Index ETF, Harvest CSI 300 ETF, ChinaAMC CSI 300 ETF, and ChinaAMC China 50 ETF.

The infusion of funds helped the CSI300 blue-chip index rebound by approximately 14% from its five-year lows in February. This move by Central Huijin underscores its commitment to stabilizing China's capital markets, particularly amidst concerns over the country's economic recovery and government stimulus measures.

Additionally, Central Huijin's purchasing activity in ETFs like Huatai-PB CSI300, E Fund CSI300 Index, Harvest CSI 300, ChinaAMC CSI 300, and ChinaAMC China 50 amounted to significant sums, as revealed by Reuters calculations. Observers noted substantial inflows into Chinese-domiciled ETFs, with indications of strong buying by state-affiliated investors, commonly referred to as the "national team."

These investments come against the backdrop of China's first-quarter fiscal revenue decline, attributed partly to previous tax cut policies, while efforts to stimulate domestic demand and support high-tech manufacturing continue amid economic challenges.