China halts stock slide with state-backed ETF buys, short-selling curbs

But help from 'national team' appears insufficient to restore investor confidence

The Shanghai Composite Index was down 6.2% for 2024 so far as of Feb. 6, even as U.S. and Japanese stocks have rallied. © AP

NORIYUKI DOI and KENJI KAWASE, Nikkei staff writers

February 7, 2024 02:12 JST

SHANGHAI/HONG KONG -- A major Chinese state-owned investment company said Tuesday it will increase holdings of mainland-listed exchange traded funds, helping to stem a recent decline in mainland and Hong Kong stock indexes.

Central Huijin Investment, which is controlled by China's Ministry of Finance, issued a brief statement on its official website saying it has "already expanded the scope of buying ETFs in recent days." It also vowed to "continuously enhance the act of buying and expand the size of holdings," though it stopped short of giving details, including the actual amount or time frame.