Chinese exchange-traded funds favored by the sovereign fund saw inflows pick up on Tuesday, suggesting state buying might have played a role in the biggest onshore equity rally since mid-2020.

KEY TAKEAWAYS China-focused exchange-traded funds (ETFs) and U.S. listed-Chinese stocks surged Tuesday, buoyed by Beijing's broad stimulus package to boost the country's sluggish economy.The $4.4 billion iShares MSCI China ETF (MCHI) and the iShares China Large-Cap ETF (FXI),

ETFs focused on China pushed higher Tuesday after China’s central bank launched fresh measures to aid the world’s second-largest economy, although some analysts say Chinese authorities may need to make additional moves to bolster sluggish growth.

A relentless slump in Chinese equities has pushed star money managers out of jobs, left investors saddled with losses and driven a 40% drawdown in active fund assets from their peak. Yet one corner of the market has been booming.