China’s “national team” has reduced its dominant position in the country’s largest stock ETFs, signaling efforts to cool an overheated rally earlier this year. Central Huijin Investment Ltd cut its holdings in key ETFs below the 20% disclosure threshold in Q1 filings, with current stakes unclear. The move confirms it likely sold heavily in January amid record turnover and a speculative tech-led rally. It also suggests Beijing is shifting from market support to actively curbing excess speculation

China’s “national team” has reduced its dominant position in the country’s largest stock ETFs, signaling efforts to cool an overheated rally earlier this year. Central Huijin Investment Ltd cut its holdings in key ETFs below the 20% disclosure threshold in Q1 filings, with current stakes unclear. The move confirms it likely sold heavily in January amid record turnover and a speculative tech-led rally. It also suggests Beijing is shifting from market support to actively curbing excess speculation. Holdings in major ETFs, including a 200 billion yuan CSI 300 product, were likely reduced by at least half, while smaller funds such as the SSE 180 ETF also saw broad reductions below disclosure levels.