Central Huijin Expands Holdings, Major Broad-Based ETF Shares Increase by Over 100 Billion
In early trading on February 6th, Central Huijin issued an announcement recognizing the current allocation value of the A-share market. The company expanded the scope of holdings of exchange-traded open-end index funds (ETFs) and committed to increasing its holdings. This move is aimed at maintaining the scale and operation of the capital market.
Following Huijin’s announcement and the China Securities Regulatory Commission’s suspension of new refinancing securities lending, the A-share index rose in the afternoon. The ETF sector collectively strengthened, with 9 stock ETFs hitting their daily limit that day. Notable increases were seen in China Science and Technology 50 ETF, China Southern CSI 500 ETF, and E Fund GEM ETF.
Investors have been bargain-hunting since the beginning of the year, resulting in a significant increase in the share of major ETFs. According to the data, the share of major broad-based ETFs has increased by more than 100 billion shares since the beginning of the year, with a net inflow of funds exceeding 200 billion yuan.
Central Huijin’s move to increase its holdings of ETFs has been met with positive feedback from the market. Huijin’s actions have been viewed as necessary and reasonable, with market participants welcoming the move to stabilize the stock market. Harvest Fund emphasized the significance of stabilizing the stock market in maintaining residents’ expectations and confidence.
Additionally, investment institutions use ETFs as their primary tool to provide liquidity to the market, as ETFs have unique advantages for comprehensive market investment. China Asset Management noted the positive signals sent to the market by large institutional funds being deployed in ETFs, reflecting the attention of the government to the stable development of the capital market.
Overall, the market response to Central Huijin’s announcement has been positive, with investors and market participants viewing the move as a stabilizing force for the A-share market. As the market grapples with challenges, the influx of incremental funds and the determination of policy demonstrate the potential for a revival of confidence.
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