China mobilizes state funds to halt declines in the stock markets

China is mobilizing state-linked investment funds to stabilize falling stock markets, particularly after significant declines in tech stocks. The CSI 300 index has dropped about 20% since June, entering a bear market. In Hong Kong, investors have sold HK$20 billion in stocks since early October, potentially marking the largest capital outflow since July 2021. The national team, comprising state investment funds, has been buying stocks to discourage further market exits. Analysts warn that while these purchases may temporarily stabilize markets, a sustained recovery hinges on internal demand and the resolution of ongoing economic challenges, including a weak housing sector and low consumer spending.