China's National Team Enters A-Shares: E Fund CSI 300 ETF Records Historic Single-Day Inflow of 18.8 Billion Yuan
nashnova research
The E Fund CSI 300 ETF pulled in a record ¥18.8 billion (~$2.8 billion) on Thursday, with the bulk arriving in the final minutes of trading — a near-certain sign that state-backed funds stepped in as the CSI 300 teetered on the edge of a technical bear market.
How did ¥18.8 billion flow in?
The E Fund CSI 300 ETF logged a single-day net inflow of ¥18.8 billion (~$2.8 billion), a record for the fund.
The money arrived overwhelmingly in the closing session; the CSI 300's decline narrowed sharply in tandem.
This means → the buyer was not retail bargain-hunting. It was large, organised capital that chose to fire precisely before the close — a hallmark of National Team operations.
Why are analysts sure it's the National Team?
Bloomberg Intelligence analyst Rebecca Sin said it is "almost certain" the inflows came from state-backed funds acting as a market stabiliser.
Her reasoning rests on two pillars: the unprecedented size of the inflow and the National Team's established pattern of stepping in during sell-offs.
In plain terms = there is no official confirmation, but the sheer scale and timing have left most market participants convinced this was state money.
Why now?
The CSI 300 had fallen nearly 20% from its peak, right at the threshold of a technical bear market — defined as a 20% drop from the high.
A global tech sell-off was hitting A-shares at the same time, dragging sentiment to a low point.
This reflects a clear line from policymakers: they do not want the "bear market" label to stick.
What else is being done to support the market?
After Thursday's close, several companies announced share buybacks: Eoptolink proposed buying back up to ¥1 billion in shares; T&S Communications and AJL Electronics unveiled smaller programmes.
Innolight said September buyback shares will be cancelled — cancellation permanently reduces the float, a stronger signal than a buyback alone.
The Huaxia STAR 50 ETF and other funds commonly used for state-directed support also saw sizeable inflows, showing the buying was not confined to a single product.
What to watch next?
Shenzhen Xiangtou Asset Management fund manager Li Xuetong flagged the key question: "Can this buying persist and stay at this scale?"
She singled out a specific level: whether the Shanghai Composite can hold 3,700 with policy support — it currently sits around 3,739.
In plain terms = a single day of heavy buying can stop one day's bleeding. But without sustained follow-through, the market can slide again. Whether the National Team keeps showing up is the real dividing line.
市场有风险，内容仅供研究参考，不构成投资建议。