It reached its conclusion based on indicators such as trading patterns of key holdings by state-linked entities, inflows into select index-based exchange-traded funds (ETFs) and the purchase of shares of state-owned enterprises (SOEs). with inside information, analysts such as Si Fu and Kinger Lau explained in the report.
The top five ETFs favored by the national team increased by 90 billion yuan ($12.3 billion) in net subscriptions in August, it said.
Chinese stocks have remained weak even after a flurry of support measures to boost economic growth and prop up stocks, including easing restrictions on property purchases and a cut in stamp duty payable on foreign exchange transactions. Stock market. Investors, particularly global fund managers, doubt these gradual measures can sustain a growth recovery.
Liquidation by foreign investors continued in September for the second consecutive month. The CSI 300 index of stocks traded in yuan has fallen about 6 percent this year.
The National Team is estimated to have amassed local stock holdings equal to 3.5 percent of the total market capitalization, or about 2 trillion yuan, according to Goldman.
Strategically, China's domestic stocks remain the preferred choice for equity allocation over their foreign counterparts, due to their lower sensitivity to geopolitical tensions and foreign liquidity flows, and better sector alignment with the tailwinds of policies, according to Goldman.
โThe most effective tool to stabilize asset prices, revive investor confidence and eliminate the [last remaining] The systemic risk implicit in asset valuations has been the direct purchase of shares by the government (or sponsored entities), often on a substantial scale and with the government and central banks acting as a last resort in terms of liquidity and provision of financing,โ Goldman said in the report.
