Chinese Stock Rebound Loses Steam Despite National Team Support

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Or sign-in if you have an account.6p]y985411]bes5sfxp}xy(c_media_dl_1.png Bloomberg(Bloomberg) — An early rebound in Chinese stocks lost steam, suggesting support measures including equity purchases by two major state funds have fallen short of boosting risk appetite. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe benchmark CSI 300 Index pared its 2.2% gain to less than 0.5%. The chip-heavy Star 50 Index and Chinext Index reversed their early advances to fall more than 1%. China Reform Holdings Corp. and China Chengtong Holdings Group, two investment firms that are associated with a group of entities known as the national team, both said Sunday that they have increased holdings of Chinese equities. The announcements marked their first public disclosure of such buying since April 2025, after US President Donald Trump’s sweeping global tariffs caused Chinese stocks to fall sharply.Separately, state media reported that the China Securities Regulatory Commission will hold a meeting on Monday with listed companies, securities firms and fund managers to solicit views on promoting stable and healthy development of China’s capital markets.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe show of support followed an intensifying selloff in the world’s second-largest equities market last week, with the benchmark CSI 300 Index losing 5.3% amid a rout in global technology stocks. In another sign that Beijing was keen to restore investor confidence, exchange-traded funds known to be favored by the national team saw bouts of strong inflows last week.“Market stability has improved somewhat but the crowded positioning still needs to be addressed,” said Hua Tong, fund manager at Shenzhen Zhengyuan Investment Co. “Investors are still widely divided in their opinion toward the market’s trajectory, especially the crowded AI trade.”China Reform Holdings said a unit has tapped more than 50 billion yuan ($7.4 billion) in the People’s Bank of China’s swap facility to help stabilize the market, while China Chengtong said two subsidiaries recently purchased nearly 10 billion yuan of Chinese equity assets. They also pledged to continue raising stakes in companies such as centrally owned enterprises.Separately, China Pacific Insurance said it will continue investing in technology, consumption and new energy stocks and ETFs as part of its efforts to support the capital market. Their announcements came after weakness in local AI stocks morphed into a broader selloff, with the CSI 300 suffering its worst week since October 2022. The tech-heavy Star 50 Index plunged 17% last week, also reflecting concerns about supply pressure ahead of the blockbuster listing of chip giant CXMT Corp. Meanwhile, a basket of ETFs known to be traded by the national team saw combined inflows of around 28 billion yuan on Friday, the largest since April 2025.The quickening drumbeat of policy support is reminiscent of Beijing’s rescue campaign in April last year. At that time, national team players including China Reform Holdings, China Chengtong Holdings and sovereign wealth fund Central Huijin Investment Ltd. all vowed to buy equities to revive investor confidence.(Updates with latest market moves)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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