Beijing Intervention & ETF Flows Boost China's A-Share Markets
14 April 2025 · Uncategorized ·
To counter President Donald Trump's tariff war, Chinese authorities have mobilized a "national team" (國家隊) to support the stock market.
According to an April 9 Financial Times report, China CICC Hejian issued a statement declaring its participation in this national team. The term refers to collaborative efforts by official institutions designed to stabilize the market through investment. Following Central Huijin's announcement of increased holdings, China Chengtong Holding quickly pledged to invest ¥100 billion into the stock market.
China Guoxin Holdings committed an additional ¥80 billion in investments, and the National Council for Social Security Fund (全國社會保障基金), managed by the Chinese Ministry of Finance, also announced its intention to increase purchases. The State Financial Supervision and Management總局(NFRA) has relaxed regulations on insurance companies' stock acquisitions; many enterprises involved are state-owned institutions.
By Tuesday (April 8th), over one hundred large listed Chinese firms had pledged to repurchase their own shares, including the state-run oil giant Sinopec, China Mobile, and Kweichow Moutai.
Nomura’s chief economist for China, Ting Lu, stated that financial markets represent a key battleground in this tariff war, particularly the stock market. He predicted significant interventions by stabilizing funds supported by the People's Bank of China or national teams over the coming weeks.
Goldman Sachs reported inflows into Shanghai and Shenzhen A-shares ETFs reached ¥170 billion on Monday (April 7th) and Tuesday. Kinger Lau, Goldman’s chief equity strategist for China, noted that this scale is unprecedented since the outbreak of COVID-19, indicating substantial involvement by national teams.
(Translated with permission from MoneyDJ News; Image source: Shutterstock)
According to an April 9 Financial Times report, China CICC Hejian issued a statement declaring its participation in this national team. The term refers to collaborative efforts by official institutions designed to stabilize the market through investment. Following Central Huijin's announcement of increased holdings, China Chengtong Holding quickly pledged to invest ¥100 billion into the stock market.
China Guoxin Holdings committed an additional ¥80 billion in investments, and the National Council for Social Security Fund (全國社會保障基金), managed by the Chinese Ministry of Finance, also announced its intention to increase purchases. The State Financial Supervision and Management總局(NFRA) has relaxed regulations on insurance companies' stock acquisitions; many enterprises involved are state-owned institutions.
By Tuesday (April 8th), over one hundred large listed Chinese firms had pledged to repurchase their own shares, including the state-run oil giant Sinopec, China Mobile, and Kweichow Moutai.
Nomura’s chief economist for China, Ting Lu, stated that financial markets represent a key battleground in this tariff war, particularly the stock market. He predicted significant interventions by stabilizing funds supported by the People's Bank of China or national teams over the coming weeks.
Goldman Sachs reported inflows into Shanghai and Shenzhen A-shares ETFs reached ¥170 billion on Monday (April 7th) and Tuesday. Kinger Lau, Goldman’s chief equity strategist for China, noted that this scale is unprecedented since the outbreak of COVID-19, indicating substantial involvement by national teams.
(Translated with permission from MoneyDJ News; Image source: Shutterstock)