Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, stated on X on Thursday, October 22, 2026, that the Chinese government has been intervening heavily in its equity markets. Balchunas reported, "China's gov't has been buying $2.5b/day in equity ETFs since July to try and prop up market after AI slump. What's wild is China typically only sees about $218m/day in ETF flows = the govt is 10x the average. It would be like if the US Treasury bought $100b/day in ETFs here." The analyst cited a note from Rebecca Sin and Jacki Wang on the Bloomberg Intelligence ETF platform for these figures.
This market intervention follows a period of an "AI slump" in China, indicating government efforts to stabilize or boost equity valuations. In the digital asset space, Bitcoin ETFs have recently drawn substantial inflows, with one report noting $1.07 billion in institutional accumulation and another stating $528 million in inflows as institutions add to positions. However, Ethereum spot ETFs have seen outflows, totaling $384 million weekly, contrasting with the gains in Bitcoin funds.
Balchunas's observation implies a significant commitment by the Chinese government to support its domestic equity market, dwarfing typical daily ETF flows. The analyst's comparison to a hypothetical $100 billion daily purchase by the U.S. Treasury highlights the scale of China's intervention. This suggests a strong policy position to prevent further market declines, potentially influencing investor sentiment and market dynamics within China's financial system.
