China’s “national team” of huge state funds has injected billions of dollars into stocks to arrest a weekslong slide, as the country’s flagging markets officially entered bear territory.
The STAR Market 50 Index in China has fallen by nearly 40% in less than four months; the CSI 300 Index has retreated by about 20% from its June high, briefly entering a bear market. Industry insiders in mainland China bluntly stated that "the bubble may burst." The Central Huijin Investment Ltd., backed by state-owned funds, intervened in nine ETFs, sparking speculation that state-backed funds were providing support. However, Bloomberg Intellige…