The Shanghai Composite Index narrowly holds above 3,800 points, as "mysterious funds" flood into the CSI 300 ETF at the close.

GateUser-bd883c58 · 2026-03-23T22:37:46+00:00

Recently, A-shares experienced a sharp decline due to global risk-off sentiment, with the Shanghai Composite Index barely holding above 3,800 points. Multiple Shanghai-Shenzhen 300 ETFs are believed to be targets of "mysterious funds" providing support. Historically, such funds tend to increase their holdings of ETFs during market panic to boost market confidence. Shanghai-Shenzhen 300 ETFs are favored because of their broad coverage, controllable risk, and pro-cyclical characteristics, making them suitable for large capital investments. Retail investors can use Shanghai-Shenzhen 300 ETFs to diversify risk.

GateUser-bd883c58

2026-03-23 22:37:46

Abstract generation in progress

Question: How does this mysterious fund’s market support differ from or resemble historical actions?

Affected by global risk aversion sentiment, the A-shares market experienced a “Black Monday,” with the Shanghai Composite Index falling below 4,000, 3,900, and other key levels within two trading days, and briefly dropping below 3,800 points on March 23.

Near the end of the trading session, the Shanghai Composite Index barely held above 3,800 points. Around 14:20, multiple Shanghai and Shenzhen 300 ETFs experienced collective volume increases, suspected to be “mysterious funds” entering the market to support, including the CSI 300 ETF by Huaxia (510330).

Historically, “quasi-stabilization” funds like Central Huijin have announced increased holdings in ETFs during market panic periods (such as July 2015, October 2023, February 2024, and April 2025), often playing a role in stabilizing confidence and providing support.

The reasons large funds repeatedly choose to enter the market via CSI 300 ETFs for stabilization may include three considerations:

First, large capacity and broad coverage: CSI 300 ETFs are large in scale, covering sectors like finance, consumption, and technology, with balanced styles, effectively driving the overall market.

Second, risk is controllable: Compared to sector-themed funds, broad-based index fluctuations and drawdowns are smaller, aligning with large funds’ demand for stability.

Finally, the CSI 300’s heavy weighting in finance and consumption gives it a pro-cyclical nature: sensitive to macro policies, it can follow economic trends to obtain beta returns, and undervalued stocks after sharp declines have valuation recovery expectations.

During market volatility and uncertain main themes, ordinary investors can also use broad-based indices like CSI 300 ETFs to balance defense and offense, smoothing portfolio risks. Among many ETFs tracking the CSI 300, Huaxia CSI 300 ETF (510330.SH) has the lowest fee rate, as low as 0.15% per year. Off-market fund investors can also consider dollar-cost averaging into Huaxia CSI 300 ETF Connect C (005658.OF), which has no subscription fee, and after holding for more than 7 days, no redemption fee.

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