China Stocks Rebound as ETF Volumes Suggest Buying by State Fund

  • CSI 300 Index reverses losses of as much as 1.6% to gain 0.6%
  • A leading hedge fund touts rare opportunity to buy China
WATCH: JPMorgan’s Wendy Liu discusses the outlook for Chinese equities.Source: Bloomberg
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Chinese stocks staged a sharp recovery in afternoon trading, with a spike in volumes for an exchange-traded fund tracking state-owned shares fueling speculation of government buying.

The CSI 300 Index reversed all of its 1.6% loss to close 0.6% higher. The Hang Seng China Enterprises Index narrowed its decline after sliding almost 3% earlier.