Chinese Stocks Rebound After National Team Reveals Buying

Chinese shares rose following last week’s rout, after two major state funds revealed fresh purchases and as regulators are set to meet with key industry participants.

The benchmark CSI 300 Index gained as much as 2% in early Monday trade, after dropping 3.6% in the previous session.

The rebound came after China Reform Holdings Corp. and China Chengtong Holdings Group, two investment firms that are associated with a group of entities known as the national team, both said Sunday that they have increased holdings of Chinese equities. They pledged to continue raising stakes in companies such as centrally owned enterprises.

Separately, state media reported that the China Securities Regulatory Commission will hold a meeting on Monday with listed companies, securities firms and fund managers to solicit views on promoting stable and healthy development of China’s capital markets.

The show of support followed an intensifying selloff in the world’s second-largest equities market last week, with the benchmark CSI 300 Index losing 5.3% amid a rout in global technology stocks. While the two state funds disclosed their buying for the first time since April 2025, exchange-traded funds known to be favored by the National Team also saw bouts of strong inflows last week.

China Reform Holdings said a unit has tapped more than 50 billion yuan ($7.4 billion) in the People’s Bank of China’s swap facility to help stabilize the market, while China Chengtong said two subsidiaries recently purchased nearly 10 billion yuan of Chinese equity assets.

Their announcements came after weakness in local AI stocks morphed into a broader selloff, with the CSI 300 suffering its worst week since October 2022. The tech-heavy Star 50 Index plunged 17% last week, also reflecting concerns about supply pressure ahead of the blockbuster listing of chip giant CXMT Corp.

Meanwhile, a basket of ETFs known to be traded by the national team saw combined inflows of around 28 billion yuan on Friday, the largest since April 2025.

The quickening drumbeat of policy support is reminiscent of Beijing’s rescue campaign in April last year, after US President Donald Trump’s sweeping global tariffs caused Chinese stocks to fall sharply. At that time, national team players including China Reform Holdings, China Chengtong Holdings and sovereign wealth fund Central Huijin Investment Ltd. all vowed to buy equities to revive investor confidence.