Archive · 26 Jan 2026
China's National Team Sells $68 Billion in ETFs
China's national team, which usually supports the stock market, has started selling a lot of investments worth $68 billion.
This is a big change because they usually help keep prices stable.
They're selling because some parts of the market, like technology and chips, have gotten too expensive too fast.
This has made other investors nervous, and they're now being more careful about what they buy.
Some people think this is a good thing because it will make the market more stable in the long run.
Others are watching closely to see what happens next.
China's national team, Central Huijin Investment, sold $67.5 billion in ETFs over six sessions.
This shift signals a move from propping up the market to reining in speculative gains, particularly in technology and chip sectors.
The selling has coincided with tighter regulations on margin financing, indicating concerns over rapid gains in certain sectors.
Investors are now more cautious, focusing on stocks less owned by the national team to avoid being affected by its selling.
Despite the selling, strong demand for tech stocks has kept some indexes high, with the CSI 1000 Index at its highest since 2017.
- Who
- China's national team, Central Huijin Investment
- What
- Sold $67.5 billion in ETFs, signaling a shift in market strategy
- When
- Over six sessions last week, with effects continuing
- Where
- China's stock market, particularly in technology and chip-heavy sectors
- Why
- To drain speculative excess and facilitate a price correction in overheated sectors
- National Team
- China's sovereign wealth fund, Central Huijin Investment
- ETF Sales
- $67.5 billion across 14 ETFs in six sessions
- CSI 300 Index
- Advanced 1.8% over the past month
- Star 50 Index
- Jumped 16% in the same period
- Central Huijin's ETF Holdings
- $180 billion by the end of August 2025
- Remaining Firepower
- Estimated 5% left for the Star 50 Index fund
- Short-term Volatility
- Fell to the lowest since May on the CSI 300
- Trading Activity
- Eased from a frenzied pace of nearly 4 trillion yuan earlier this month