"Beijing's State-Led Stock Buying Sparks Surge in Chinese Trading"

Trading activity in China's largest listed companies has surged to a five-month high, likely due to increased buying by Beijing's "national team" of state-run financial institutions. The CSI 300 index is up 4% this month after a sharp sell-off in January, and state buying is believed to be aimed at short-circuiting the downward momentum. The recent rise in trading activity follows an announcement by Central Huijin to expand its purchases of exchange traded funds, with significant increases in trading volumes for ETFs linked to the CSI 300 index. Additionally, China's State Council announced the immediate replacement of the chair of the China Securities Regulatory Commission, reflecting efforts to restore confidence in the stock market. Despite steady stock market losses, Beijing's official buying appears to be more restrained than in the 2015 stock market meltdown, with purchases limited to shares in state banks and benchmark index-tracking ETFs.