Speculations swirled in the Chinese stock market, which ended the morning session flat after losing as much as 5% earlier in the day, that state-backed firms were buying shares after the top four ETFs received nearly 10 billion yuan ($1.6 billion) subscriptions, according to Reuters.
The four — China AMC 50 ETF, Huatai-PB CSI300 ETF , China AMC CSI300 ETF and Hua An Shanghai 180 ETF – recorded strong single-day inflows Monday, Reuters said, citing exchange data.
Chinese shares official entered the bear market territory Monday after the Shanghai Composite Index shed 20% from its peak. Late Monday, there were news reports that the Chinese government was planning to allow the country’s pension funds to invest in the stock market.
NexChange reported that some analysts believed the market will continue to be volatile for a week, though prospects remained positive especially on the A-shares traded in Shanghai.
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