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China State Funds Said to Buy Stocks to Stem Worsening Rout

  • Benchmark CSI 300 Index pared bulk of its 2.4% intraday loss
  • State-backed funds said to have to bought mainland shares
Pedestrians wait to cross a road in front of a screen displaying the Shenzhen Stock Exchange and the Hang Seng Index figures in Shanghai, China, on  Feb. 7.

Pedestrians wait to cross a road in front of a screen displaying the Shenzhen Stock Exchange and the Hang Seng Index figures in Shanghai, China, on  Feb. 7.

Photographer: Qilai Shen/Bloomberg
Updated on

Chinese state-backed funds intervened in the stock market on Tuesday, helping the benchmark index stage a strong recovery from its biggest intraday drop since August 2021.

The CSI 300 Index ended down just 0.6% at the close, paring an earlier slump of 2.4%. State-related funds entered the market to buy local shares in the afternoon session, according to two people with direct knowledge of the matter, who asked to not be identified because the matter is private.