China’s “national team” of major state-backed financial services companies has ploughed RMB 410 billion ($57 billion) into local equities exchange traded funds so far this year, according to UBS estimates, reports the Financial Times. Analysts at the bank said they derived the figure by making estimates based on calculations on excess transactions for 54 Chinese ETFs.
The strategists at the Swiss lender estimated that ETFs tracking the CSI 300 Index have accounted for more than 75% of the inflows and that flows into products linked to the CSI 500 index have represented 13% of net sales.
They said the national team purchased equities ETFs worth RMB 1.24 trillion between July and September 2015, and that the RMB 410 billion sum they have injected so far this year “is well below the historical level, with the potential to rise further under extreme conditions.”