①Indeed bought heavily, the ETF's second quarter report reveals that central Huijin increased its shareholding by over 210 billion yuan; ②Central Huijin is the main force in stabilizing the A-share market center; ③The national team and other institutional funds buy and hold for the long term, providing a foundation for the market's rise.
Caixin reported on July 21 (Reporter Yan Jun) that on the evening of July 20, with the concentrated disclosure of the core broad-based ETF's second quarter report, how much did central Huijin and the national team increase their holdings in the strongest 'market stabilization combination punch' in A-share history this April? The answer is now available.
Statistics from Caixin show that central Huijin and its subsidiary asset management companies, among other national teams, significantly bought 4 kinds of 300ETF, Chinaamc Shanghai A50 Exchange Traded Fund, 500ETF, 2 kinds of China Southern CSI 1000 ETF, and 180ETF, totaling at least 8 broad-based ETFs, with the total increase amount possibly reaching 210 billion yuan.
In April this year, amidst tariff frictions, the market trembled greatly, and central Huijin clearly stated its role as a quasi-stabilization fund. Subsequently, national teams such as China Chengtong and China Reform Group called for decisive increases in A-share stocks and ETFs, providing reassurance to the market.
How significant is central Huijin's market support? The total amount for the purchase of 8 ETFs reaches as high as 210 billion yuan.
Huatai-PineBridge disclosed that its 300ETF second quarter report shows that 'Institution 1' made a large purchase of 10.874 billion shares of this ETF in the second quarter of this year. Comparing with the top ten shareholders' initial shares in the 2024 report, 'Institution 1' refers to central Huijin's asset management company, which purchased a significant amount of over 10 billion shares. Estimating based on the average price of 3.7 yuan per share after 7 trading days starting from April 7, this purchase amount reaches up to 40 billion yuan. In terms of the purchased shares, central Huijin bought the most of this ETF.
In addition to the Huatai-PineBridge 300ETF, central Huijin also invested in another 3 giant 300ETFs. Specifically:
Central Huijin increased its holdings in Huaxia 300ETF by a total of 9.288 billion shares, costing as much as 35 billion yuan.
Central Huijin increased its shareholding of E Fund Csi 300 Index by 8.429 billion units, costing approximately 32 billion yuan.
Central Huijin's asset management also increased its shareholding of Harvest Csi 300 Index by nearly 5.54 billion units, with an increase amount of 20 billion yuan. In total, it is estimated that Central Huijin's increase in the four Csi 300 Index ETFs amounts to a staggering 127 billion yuan.
Beyond the Csi 300 Index, Central Huijin also increased its holdings in multiple ETFs covering large and mid-cap styles. Taking China Asset Management's Chinaamc Shanghai A50 Exchange Traded Fund as an example, in the second quarter of this year, 'Institutions 2', which is Central Huijin Asset Management Company, increased its shareholding by 8.183 billion units, estimating an increase of nearly 22 billion yuan.
Central Huijin Asset Management Company also increased its shareholding of Southern 500ETF, buying over 3.366 billion units in the second quarter, with an estimated cost of nearly 19 billion yuan.
In the second quarter of this year, Central Huijin increased its holdings in Southern China Southern CSI 1000 ETF, with 'Institutions 1' subscribing to 5.655 billion units. According to the top ten shareholders disclosed by this ETF in 2024, 'Institutions 1' refers to Central Huijin Asset Management Co., Ltd. As estimated from the closing price on April 7, the increase by Central Huijin Asset Management reaches as high as 13 billion yuan.
In addition, Central Huijin also increased its shareholding of Huaxia China Southern CSI 1000 ETF, with an increase of over 3.8 billion units, costing nearly one hundred billion yuan.
Moreover, the Huazhong 180ETF, in which Central Huijin holds nearly 90% of the share, also received an additional increase. The quarterly report shows that Central Huijin increased its shareholding by 5.232 billion yuan, with the increase amount reaching as high as 18 billion yuan.
The effectiveness of the quasi-stabilizing Funds is remarkable.
In early April this year, the tariff friction caused a dramatic fluctuation in global risk assets, with A-shares and Hong Kong stocks also affected. The Central Huijin clearly defined its quasi-stabilizing Funds identity, and within just two trading days, the market shifted from "panic selling" to "rational pricing," quickly reversing sentiment and significantly boosting market confidence.
On April 7, amid market panic and decline, Central Huijin, China Chengtong, and China Guoxin respectively announced large-scale purchases of ETFs and stocks of central enterprises and technology innovation stocks, and will continue to increase their shareholding.
On the morning of April 8, a relevant person in charge of Central Huijin stated that Central Huijin is the "national team" in the capital markets, playing a role similar to that of a quasi-stabilizing Funds. It will firmly increase shareholding in various market-style ETFs, intensifying the level of shareholding while balancing the shareholding structure. Subsequently, the central bank expressed its firm support for Central Huijin to intensify its shareholding in stock market index Funds and to provide sufficient re-lending support when necessary, resolutely maintaining the smooth running of the capital markets.
From the second quarter reports of ETFs, Central Huijin invested substantial amounts of over 200 billion yuan in the A-share market and held them long-term, laying a foundation for sustained market growth.
Central Huijin has gradually become the backbone force stabilizing the central axis of the A-share market during periods of intensified market fluctuations. SWHY's chief strategy Analyst Fu Jingtai previously summarized that Central Huijin has repeatedly increased its shareholding in ETFs in recent years, becoming important long-term allocated funds in the A-share market.
First, in October 2023, a dual approach was taken: by increasing shareholding in the Industrial And Commercial Bank Of China, Agricultural Bank Of China, Bank Of China, China Construction Bank Corporation (on the 11th), and broad-based ETFs (on the 23rd), precisely blocking the self-reinforcing pessimistic expectations in the market since May, making valuations return to fundamentals.
Second, in February 2024, balanced efforts will be made: expanding the range of ETF shareholdings to cover the growth sector, breaking the "negative cycle of supply and demand for funds," and directly fostering subsequent rebounds after severe declines around the Spring Festival.
In April of this year, a rapid response was initiated: in the face of external tariff shocks, the ETF shareholding plan was activated again. On the market, the decline has clearly narrowed, and after the shareholding and statements, the three major A-share indices turned positive. As of July 18, the Shanghai Composite Index has recorded three consecutive months of rare positive closes and has reached a new closing high for the year.
Central Huijin stated that it has full confidence and sufficient capability to firmly maintain the stable running of the capital markets. In the face of market fluctuations, Central Huijin has a clear plan: first, it will continue to play the role of a "stabilizer" in the capital markets, effectively curbing abnormal market fluctuations, and will decisively take action when necessary; second, it will firmly increase the shareholding of various market style ETFs, increasing the intensity of shareholding and balancing the structure of shareholding.
