China’s state-backed funds appear to be stepping back into the stock market as authorities seek to limit further losses: The E Fund CSI 300 Index ETF, one of the so-called “national team’s” favorite blue-chip ETFs, attracted a record +18.8 billion yuan, or +$2.8 billion, on Thursday. The inflows came as the CSI 300 was close to a -20% drop from its peak, before trimming losses late Thursday and rising on Friday for the first time this week. Other ETFs frequently used to support equities, including the ChinaAMC STAR 50 ETF, also posted larger inflows, signaling a possible return of official market support for pressured technology stocks. The intervention follows a similar effort in July, when state-linked investors, insurers and asset managers moved to shore up confidence after a tech-led selloff, with authorities also seeking to support Chinese AI companies’ access to capital. China’s equities are on the verge of entering a bear market.