© Reuters. FILE PHOTO: An investor watches a board showing stock information at a brokerage office in Beijing, China October 8, 2018. REUTERS/Jason Lee/File Photo
Investors were also excited by Tuesday's approval of an additional 1 trillion yuan of sovereign bond issuance. The fiscal stimulus"is injecting some confidence to an extremely pessimistic market that saw no hope in the economy," said Huang Yan, fund manager of Shanghai QiuYang Capital Co. Huang is also wary of another selloff since further falls in stock prices could force leveraged investors to sell when they face margin calls.
"China's central government is endorsing the stock market," said Qi Wang, chief investment officer of UOB Kay Hian's wealth management division in Hong Kong. That support showed in markets this week as several ETFs, including the PB CSI 300 ETF and E Fund CSI300 Index ETF saw heavy inflows after Huijin announced its purchases in a statement, adding it would continue to do so.