Is the Chinese government buying shares to prop up the market?
Four leading ETFs in Shanghai received inflows for a second straight day, igniting more talks that the government through state-backed institutions is intervening in the stock market, according to Reuters.
The ETFs tracking the country’s key indexes received 15 billion yuan ($2.4 billion) in fresh funds Tuesday, up from Monday’s 10 billion yuan, the report said.
News that money flowed Monday into the four major ETFs — China AMC 50 ETF, Huatai-PB CSI300 ETF, China AMC CSI300 ETF and Hua An Shanghai 180 ETF – helped the Shanghai Composite Index stage a strong recovery Tuesday afternoon after plunging more than 5% in the morning trade. The index ended up 5.5% higher.
The Shanghai Composite Index was last seen down 0.1% late Wednesday morning after losing 1.9% at the opening, according to MarketWatch.
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