Chinese stocks rebounded on Friday after a sell-off dragged the benchmark index into a bear market, as surging trading volumes in the nation’s biggest exchange-traded funds (ETFs) pointed to possible state buying and major companies at the centre of the artificial intelligence trade sought to reassure investors.
The CSI 300 Index rose 1 per cent to 4,075.44 as of 2.06pm local time, reversing an earlier decline of as much as 2 per cent. Turnover in several key ETFs tracking the gauge surged, suggesting that Central Huijin Investment and other state-backed funds might have intervened to stem further losses.
The benchmark technically entered bear-market territory a day earlier after sliding 20 per cent from its June peak.
Technology stocks led the rebound. The ChiNext 50 index rallied 2.9 per cent after the nation’s top three makers of optical transceivers used in AI data centres either unveiled share buy-back plans or reassured investors that operations remained normal.
