China’s state-directed buying binge has swollen the size of exchange-traded funds (ETFs) tracking the underlying benchmark CSI 300 Index, helping them outperform the market while boosting their asset-size ranking.
Global fund managers have become more positive about Chinese stocks after the securities regulator took a flurry of forceful measures to halt a three-year decline, according to a joint-venture brokerage of HSBC Holdings.
Chinese state intervention has tentatively put a floor under stocks, but corporate earnings show little sign of providing upwards momentum as pressure is building for investors to pocket profits from the decent gains the market has made.