China’s national team may need to accelerate stock purchases after the benchmark notched a record losing streak, though state-backed buying alone may not be enough to put the market on a sustained recovery, according to Bloomberg Intelligence.
Central Huijin Investment Co., the state-backed investor that leads China’s market stabilization efforts, raised $231 billion through ETF sales in the first half but has redeployed just $43 billion since purchases resumed in July, BI analysts including Rebecca Sin wrote in a note. That leaves about $188 billion in dry powder, enough for 75 sessions of buying at the recent pace.
“With no global equities rebound to rely on, the national team might need to buy more and do so for longer than in its two most recent rescues, during the April 2025 tariff shock and the July 2026 technology selloff,” according to the analysts. “Capacity isn’t the constraint; willingness to deploy money is. So far this month, the pace of buying suggests the national team is cautious,” they added.
According to BI estimates, state-backed funds spend about $15 billion between Oct. 9 through Oct. 20. That pace was slower than the July 2026 rescue.
Signs of national-team buying have picked up this month as the CSI 300 Index nears a technical bear market following 10 weeks of selling. The recent selling has been disproportionately centered on tech, with the Star50 Index down nearly 40% from its peak amid the global AI rout, making it one of the region’s worst performers.