(Bloomberg) -- China’s stock markets staged a mid-morning rebound on Thursday, coinciding with increased activity in several exchange-traded funds that the so-called national team is known to favor.
Turnover in passive funds linked to China’s benchmark CSI 300 jumped, with the E Fund ChiNext Price Index ETF and Harvest CSI 300 ETF seeing above-normal trading. Volumes among the slate of instruments, including the E Fund CSI 300 ETF, were up to three times their three-month averages.
Investors are keenly awaiting a readout later in the day from China’s Third Plenum, a twice-a-decade political event where President Xi Jinping is expected to unveil his long-term vision for the economy. Chinese stocks have been among the worst performers in Asia this year due to sluggish growth and weak consumer demand.
Both the CSI 300 Index and the tech-heavy ChiNext Index erased earlier losses, while Hong Kong’s Hang Seng China Enterprises Index also flipped direction after falling by as much as 0.9%.
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