Beijing – A key unit of China’s sovereign wealth fund, Central Huijin Investment Ltd., has generated paper gains exceeding $50 billion through⁣ strategic investments in local exchange-traded funds (ETFs), according to recent analysis by Bloomberg Intelligence. This ample profit underscores the meaningful level of government intervention aimed⁣ at bolstering the country’s stock market.

Central Huijin, an affiliate of China Investment Corp. and a core component of the “National Team” – a ⁤group of state-backed investors – initiated a large-scale ETF purchasing ‍programme in 2023. Filings reveal that by the end of August, the fund held⁢ approximately $180 billion in ETF assets.

This aggressive investment strategy has played a crucial role in stabilizing domestic equities, coinciding with ⁣a period‍ of multi-year‌ highs in the⁤ Chinese stock market. The gains realized by Central Huijin demonstrate the potential effectiveness‍ of state-led market support mechanisms.