The CSI 300 Index ended down just 0.6% at the close, paring an earlier slump of 2.4%. State-related funds entered the market to buy local shares in the afternoon session, according to two people with direct knowledge of the matter, who asked to not be identified because the matter is private.
Meanwhile, U.S.-listed Chinese shares gained in premarket trading, with large-cap technology stocks including Alibaba Group Holding Ltd. and JD.com Inc. leading the way.
The move by state funds was intended to slow the pace of declines, one of the people said. Financial shares including brokerages were among those to have been purchased, the person said. Sub-gauges of cyclical sectors such as energy, utilities and financials posted gains in Tuesday’s session even as the benchmark ended lower.
The people didn’t provide information on the amount purchased or the frequency of such buying. The China Securities Regulatory Commission didn’t reply to a fax seeking comment.
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