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Bullish surprise! Foreign Institutions raised the rating of Chinese Stocks.

Breakings ·  May 15 11:04

As a result of easing trade tensions, foreign Institutions have made a significant turnaround in their outlook for Chinese Stocks, expressing optimism about China's growth prospects. Among them, Nomura Securities reported that it has upgraded the rating of Chinese Stocks to 'tactical overweights' and indicated that it will move some funds from India to China; Citigroup has raised the year-end Target Price for the Hang Seng Index by 2% to 25,000 points. Additionally, asset management giants like Blackrock, Allianz, and Wellington have stated that multiple bullish factors will enhance the attractiveness of Chinese Assets. On May 14, UBS Group's Chief Investment Officer, Hu Yifan, mentioned in a media interview that the firm has recently upgraded the rating of Chinese Technology to 'attractive,' expecting the AI ecosystem and its related industries to definitely be the direction for China's future. Meanwhile, foreign capital has begun to make substantial investments in Chinese assets. Morgan Stanley noted in its latest report that American hedge funds increased their Call bets on Chinese Stocks last week. Michael Dyer, Investment Director of M&G Investments' long/short multi-asset strategy, stated that his company has recently increased its exposure to China. Analysts predict that the attractiveness of Renminbi Assets will encourage international capital to increase its allocation to the Chinese Capital Markets, especially for high-quality Blue Chips and high-rated Bonds with long-term growth potential.

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