Biggest China ETF Sees Inflows Surge as State Are Said to Intervene
- About $1.19 billion has flowed into China 50 ETF this month
- Shanghai Composite on course for a 7.7 percent monthly drop
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More money is flowing into the world’s largest exchange-traded fund tracking Chinese stocks than at any time since the boom-and-bust in 2015, as state investors were said to have been stepping in to stem a market rout.
The Shanghai-traded China 50 ETF has received about $1.19 billion this October, as the Shanghai Composite Index heads for one of its worst months since January 2016. Other mainland large-cap funds including China CSI 500 ETF and the Hong Kong-traded CSOP FTSE China A50 ETF have also seen a surge in inflows. China’s so-called national team of state funds has been buying stocks in a targeted fashion over the past week, including purchasing large-cap stocks on Friday and Monday, according to people familiar with the matter.