How China’s “national team” shapes stock market moves

China's 'national team' is increasingly regarded as a mechanism to manage stock market volatility, as Beijing aims to utilize stocks to bolster confidence, fund technological advancements, and offset weaknesses in the property sector. The Chinese authorities oversee this stabilization by mobilizing state-linked institutions to effectively buy or sell stocks, particularly emphasizing ETF trading during significant market fluctuations. This strategy seeks to create a 'slow bull' market, aimed at improving returns for state-linked stakeholders and fostering broader financing opportunities in vital sectors. However, the efficacy of such interventions tends to diminish over the long term, with fundamental policy choices remaining the key drivers of market direction.