China’s "National Team" of state-backed investors is poised to cut its domestic equity ETF holdings by about 90% in the first half of 2026, according to calculation. Led by Central Huijin Investment Ltd., the group has already offloaded around $170 billion worth of these ETFs this year, which includes $30 billion sold since the beginning of April. This continued selling activity is aimed at tempering perceived market froth, and while it has placed downward pressure on the benchmark CSI 300 Index

China’s "National Team" of state-backed investors is poised to cut its domestic equity ETF holdings by about 90% in the first half of 2026, according to calculation. Led by Central Huijin Investment Ltd., the group has already offloaded around $170 billion worth of these ETFs this year, which includes $30 billion sold since the beginning of April. This continued selling activity is aimed at tempering perceived market froth, and while it has placed downward pressure on the benchmark CSI 300 Index, the sales have successfully reduced the group's stakes in multiple ETFs below the 20% disclosure threshold. Analysts note this reduction minimizes future selling pressure and keeps their actions hidden from upcoming 1H filings. Despite the massive ETF redemptions, broader market liquidity and resilience remain strong, buoyed by an influx of retail investor account openings, increased non-bank institutional deposits, and net buying from overseas investors.