In the first quarter, China\’s sovereign fund, Central Huijin Investment, made significant purchases of blue-chip stocks to support the country\’s faltering stock market, buying over 300 billion yuan ($41.42 billion) worth of exchange-traded funds (ETFs).
According to the funds\’ latest quarterly reports, among the ETFs purchased were Huatai-PB CSI300 ETF, E Fund CSI300 Index ETF, Harvest CSI 300 ETF, ChinaAMC CSI 300 ETF, and ChinaAMC China 50 ETF.
The investments contributed to a 14% rebound in China\’s CSI300 blue-chip index from its five-year lows in February, further bolstered by market-friendly government policies and changes in the top securities regulator.
Central Huijin disclosed in early February its plans to increase its investments in Chinese ETFs as part of its commitment to stabilizing the nation\’s capital markets.
This move came as the CSI 300 index hit a low point, reflecting concerns over China’s sluggish economic recovery and insufficient governmental economic stimuli.
Per the reports, central Huijin purchased 26.3 billion units of Huatai-PB CSI300 ETF, valued at approximately 87 billion yuan ($12.01 billion), along with significant additions to E Fund CSI300 Index ETF and Harvest CSI 300 ETF totaling around 73 billion yuan ($10.08 billion) and 53 billion yuan ($7.32 billion) respectively.
Furthermore, Central Huijin invested $7.73 billion in ChinaAMC CSI 300 ETF and $4.97 billion in ChinaAMC China 50 ETF during the quarter.
