Source: Wall Street
Author: Zhu Xueying

The recent higher-than-expected recovery of China's economy has attracted global attention.Overseas capital is pouring into Chinese assets at its fastest pace since 2018.

According to EPFR Global, a research firm, in the first four weeks to January 25thOverseas fund managers have invested $1.39 billion in A-shares and $2.16 billion in Hong Kong stocks over the same period.By the end of January, northbound funds had increased their positions by 141.2 billion yuan, with a net inflow setting a new record.

Media reported on February 5th that Steven Shen, EPFR's quantitative strategy manager, said:

Active fund managers' optimism about China's stock market has risen to its highest level in five years.. In a very short period of time, we expect more inflows from active funds.

In addition, Morgan Stanley's data show that as of January 25thU. S. fund managers focused on long-term investments have bought $1.3 billion worth of U. S.-listed Chinese stocks this year, making them a strong bullish on Chinese assets for the second month in a row.

Daimo said:

U.S. long fund managers say they are starting to reduce their exposure to Chinese assets or are in discussions with investors to interpret exposure limits to Chinese assets. They expectThe rate of capital inflows into Chinese assets will accelerate in the second quarter of this year.

And China's local investors are also showing strong bullish expectations.

Lawrence Lok, chief financial officer of wealth management company Hywin, said:

Considering China's macroeconomic environmentI think in 2023, we will see more (Chinese) customers' money flowing into the market, including the secondary market.

Analysts are optimistic that Chinese assets will continue to rise.

Although most developed economies are struggling to cope with the recession, few doubt that China's stock market will shine this yearMany institutions have raised their forecasts for China's economic growth.

Goldman Sachs Group raised his forecast for china's economic growth to 5.5%, pointing out that the country's economic recovery was accelerating after the government released better-than-expected economic data.

At the same time, analysts believe that as the economy recovers, Chinese corporate profits are likely to grow and add momentum to the stock market. Goldman Sachs Group, a strategist, said on Sunday that the Chinese stock market had room for further purchases. Although hedge fund investors have increased their holdings of Chinese stocks for three months in a row, their positions have not fully kept up with the current change in the investment wind in China.

And not only the stock market, for the RMB exchange rate, bond markets, commodities, etc., investment banks also believe that related assets will continue to rise.

Edit / Somer