Details behind the "V" shaped market in April exposed, Huijin "sweeps" large, medium, and small-cap ETFs

April 2025 is a "critical moment" for the domestic stock market. From April 7 to April 9, the A-share index experienced a classic scene of opening down 5% and then dropping as much as 9%, followed by a strong recovery.

Behind this is a "national-level institutional rescue," with the three giants' press conference publicly declaring their intentions and over 150 billion yuan directly injected. A well-organized and powerful market rescue operation thus unfolded.

The latest fund Q2 report once again reflects on this market rescue from its perspective, especially highlighting the performance of Central Huijin, which has immense financial strength and received "unlimited liquidity" support at this critical moment.

The recently disclosed quarterly report from the funds shows that Central Huijin, part of the "national team," played the role of a "stabilizer" during the market fluctuations in Q2, increasing its holdings in various ETFs by over 150 billion yuan.

The management team behind Central Huijin displayed a "general with a sword" demeanor during that quarter.

Hundreds of Billions Increased in CSI 300 ETF

At the critical moment in the market this April, Huijin Company released a "strong" signal to the market through a Q&A session with reporters, confirming its positioning as a "quasi-stabilization fund," and emphasizing its strong asset strength, stable cash flow, and efficient financing channels.

The facts proved this to be true.

The quarterly report of the largest ETF in the market, Huatai-PB CSI 300 ETF, shows that an investor named "Institution 1" subscribed for 10.874 billion shares in this quarter. Comparing with previous periodic reports, this Institution 1 is Central Huijin Asset Management Co., Ltd.

Based on the average transaction price on the highest trading days of this ETF, April 7 and 8, Central Huijin spent at least 40.2 billion yuan to purchase this ETF.

Similarly, it can be found that Central Huijin Asset Management Co., Ltd. subscribed for 8.429 billion shares of E Fund CSI 300 ETF in Q2, estimated to cost around 30 billion yuan; subscribed for 9.288 billion shares of Huaxia CSI 300 ETF, estimated to cost around 34.6 billion yuan; and subscribed for 5.540 billion shares of Harvest CSI 300 ETF, estimated to cost around 20.7 billion yuan.

In other words, Huijin spent approximately 125.5 billion yuan just on these four CSI 300 ETFs.

Acting During Adjustments

Additionally, the Q2 report also shows that Huijin's increase in ETF holdings was differentiated.

For instance, in Q1, the increase in holdings for these funds was merely "skimming the surface" with 363 million shares, approximately 1.445 billion yuan in market value.

However, when the market underwent significant adjustments, the ETF products acted with "massive trading volumes" to stabilize the market, with efforts at least at the level of 40 billion yuan.

Looking back at that time, Huijin's statements were particularly meaningful.

At that time, Huijin Company stated that Central Huijin has always been an important strategic force in maintaining the stability of the capital market, serving as the "national team" in the capital market, playing a quasi "stabilization fund" role Since 2008, Central Huijin Investment Ltd. has participated multiple times in maintaining the stability of the capital market and actively enhancing the inherent stability of the capital market.

The company also stated that it will continue to play the role of a "stabilizer" in the capital market, effectively smoothing out abnormal market fluctuations, and will act decisively when necessary. In the next step, Central Huijin Investment Ltd. will firmly increase its holdings in various market style ETFs, intensify its buying efforts, and balance the structure of its holdings. Central Huijin Investment Ltd. has full confidence and sufficient capability to resolutely maintain the stable operation of the capital market.

Increasing Holdings in Various Market Style ETFs

Some ETFs that paused buying in the first quarter also received increased holdings from Central Huijin.

For example, in the second quarter, Central Huijin Asset Management Co., Ltd. increased its holdings in Huaxia SSE 50 ETF by nearly 8.183 billion shares, estimated to cost over 21 billion yuan.

Additionally, Central Huijin Asset Management Co., Ltd. increased its holdings in Southern CSI 500 ETF by 3.366 billion shares in the second quarter, estimated to cost over 17.8 billion yuan; directly increasing from a holding ratio of 14.95% at the end of 2024 to a holding ratio of 31.46% at the end of the second quarter report, which is a situation where a single investor's holding ratio of fund shares reaches or exceeds 20%.

Moreover, Central Huijin Asset Management Co., Ltd. increased its holdings in Southern CSI 1000 ETF by 5.655 billion shares in the second quarter, with estimated spending also exceeding 13.1 billion yuan; increased holdings in Huaxia CSI 1000 ETF by nearly 3.805 billion shares, with estimated spending also exceeding 8.5 billion yuan; and increased holdings in GF CSI 1000 ETF by over 2.513 billion shares, with estimated spending also exceeding 5.6 billion yuan.

It can be seen that not only large-cap broad-based indices have been increased, but also small and mid-cap broad-based indices have seen capital inflows, reflecting Central Huijin Investment Ltd.'s commitment to increasing holdings in various market style ETFs.

There is a High Probability of Hidden Funds

Of course, due to the limited data disclosed in the quarterly reports, some fund increases may not be truly verified until the semi-annual reports.

For example, the largest ChiNext ETF, E Fund ChiNext ETF, saw a large amount of trading on April 7 based on market performance.

However, according to the 2024 annual report of this fund, only Central Huijin Investment Ltd. has a holding ratio exceeding 20%. Currently, in the quarterly report, the only one with a holding ratio exceeding 20% is also Central Huijin Investment Ltd. At that time, the relatively active Central Huijin Asset Management Co., Ltd. only had a holding ratio of 8.19% Therefore, it was the Central Huijin Asset Management Co., Ltd. that increased its holdings, but the holding ratio has not yet reached 20%; or perhaps the buyer is someone else, which may only be clarified in the semi-annual report.

Risk Warning and Disclaimer

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