Purchase of shares from Chinese state funds

Sources close to the subject stated that government funds purchased Class A stocks, especially financial shares, in order to stop the decline in shares/stock markets. Sources did not provide information on how much was purchased.

With purchases, the benchmark index CSI 300 offset some of its early 2.4% decline. The index had entered a bear market due to the recent turmoil in the country's real estate sector and concerns about the weakening of the economy.

Stock markets in the country had a weak start to 2022. While the Chinese Central Bank's interest rate cut last month was not enough to excite domestic investors, the CSI 300 index decreased by 6.7 percent since the beginning of the year. In the Chinese New Year, where expenditures generally increase a lot, the fact that consumer expenditures remained below the estimates this year was effective in the current decline of the CSI 300 index.

The tech-heavy ChiNext index fell 2.5 percent and fell 20 percent from its August peak, entering a bear market.

Tesla's battery supplier, Contemporary Amperex Technology, also fell 6.7 percent today.