China’s largest exchange-traded fund focused on stocks is poised to see its biggest monthly inflow on record, a sign that some investors are buying the dip and betting on a turnaround amid enhanced policy support. Huatai-Pinebridge CSI 300 ETF has attracted 32 billion yuan ($4.4 billion) of funds so far in August, the most since the product was launched in 2012.

Chinese equities have been languishing for most of the month against the backdrop of growing macro headwinds. The CSI 300 Index had lost about 8% before the weekend policy boost, which included a cut to stamp duty on stock trades, drove a 2.2% gain through Tuesday. The surge in inflow contrasts to steady selling by foreign investors.

--With assistance from April Ma.