Chinese Stocks Rebound from Bear Market as ETF Volumes Hint at State Buying

The CSI 300 Index closed up 1.7 per cent at 4,105.33 on Friday, erasing an intraday drop of as much as 2 per cent and pulling the benchmark out of a bear market. Surging turnover in the country's largest exchange-traded funds suggested state-backed buyers may have stepped in to arrest the slide. The CSI 300 ETF managed by E Fund Management logged 19.5 billion yuan (US$2.9 billion) in turnover, its heaviest trading session since October 9, 2024. The volume spike pointed to possible purchases by Central Huijin Investment and other government-linked funds aiming to contain further losses. The rebound followed a sell-off that had pushed the index into bear-market territory, with major companies tied to the artificial intelligence trade also moving to reassure investors. The CSI 300's recovery came after losses of as much as 2 per cent earlier in the session were fully reversed by the close.