In China, sentiment for Japanese stocks is showing signs of overheating. On January 17 and 18, China’s Shanghai Stock Exchange suspended trading in exchange-traded funds (ETFs) linked to the Nikkei Stock Average for two consecutive days. This is because the ETF’s trading price significantly exceeds the reference net value of fund shares, warning investors that trading is overheated.Although the net asset balance of China’s Japanese stock ETF is only tens of billions of yen, Chinese funds are likely to increase their influence on Japanese stocks.Inside the Shanghai Stock Exchange (Reuters) The one that was suspended was China Nomura Nikkei 225 ETF, a subsidiary of China Asset Management Company, a large Chinese asset management company. Trading stopped one hour after opening at 9:30 a.m. on the 17th and 18th.China Asset Management stated that “investors are hereby reminded to pay attention to the risk of price premium in secondary market transactions. Investors may suffer heavy losses if they invest blindly.” ChinaAMC Nomura Nikkei 225 ETF is one of several Nikkei Stock Average ETFs in China. As of January 17, the net asset balance was approximately 659 million yuan.China’s stock prices have been depressed recently. Against the background of the real estate downturn and Sino-US issues, the Shanghai Composite Index, a representative stock price index, hit a new low since May 2020 on January。