State-backed funds and regulators intervened with ¥60bn in buybacks to counter volatility from global tech deleveraging and profit-taking.
China’s state-backed funds and regulators deployed ¥60bn in stock buybacks and re-lending facilities to stabilize A-shares after global tech deleveraging triggered domestic market volatility. The move targeted state-owned enterprises, technology firms, and ETFs, signaling a protective stance rather than broader macroeconomic repair.
Institutional flows into Chinese equities rebounded last week following heavy selling in June, with cross-border participation expected to rise. Retail investors, however, shifted from selling in April to buying in mid-June before recent momentum stalled, leaving their role uncertain.
The intervention follows a symposium by the China Securities Regulatory Commission, which emphasized stronger supervision and stable market operations. Analysts view the support as a potential upside risk for APAC sentiment ahead of month-end.