Investors usually judge the market breadth by observing the ratio of rising stocks to falling stocks.

Finance and Economics APP learned that, according to KraneShares data, a total of 5,088 stocks in the Chinese stock market rose on Monday, with only 4 stocks falling. The sse composite index rose by 8.06%, reaching an increase of 8%, leading to a cumulative increase of 17% in September. This is the best performance in 16 years. In addition, restrictions on real estate in Beijing, Shanghai, and Shenzhen have been lifted, further boosting the market.

Another phenomenon worth noting is that mainland Chinese investors have been buying Hong Kong stocks, while Hong Kong investors have been actively purchasing mainland stocks.

KraneShares pointed out that the trading volume through the northbound link (allowing Hong Kong and overseas investors to buy Chinese A shares) is four times the normal level, while the trading volume through the southbound link (allowing mainland investors to buy stocks of Hong Kong-listed companies) has reached six times the normal level.

Goldman Sachs strategist Scott Rubner stated that over the weekend, he received the most inquiries about the Chinese market ever. Rubner also mentioned, "This is a new trend, the s&p 500 index is not a worthwhile investment target this October." He advises investors to focus on call options for iShares China Large-Cap ETF (FXI.US) and iShares MSCI Emerging Markets ETF (EEM.US).

Meanwhile, reports on Monday indicated that as of September 25, investors have been reducing their holdings in U.S. stock funds for the fifth consecutive week, mainly due to continued concerns about the health of the U.S. economy and caution ahead of the U.S. presidential election.

According to data from the London Stock Exchange, investors this week massively sold off $22.43 billion worth of U.S. stock funds, marking the largest weekly net outflow since December 2022.

Last week, the weakness in consumer confidence in the USA further intensified investors' concerns about the labor market conditions, and the market began to worry that the Fed's unexpected 50 basis point rate cut was to address a significant economic slowdown.

Looking at the details, large-cap stock funds in the USA experienced a significant outflow of up to $15.23 billion, marking the largest single-week sell-off since December 2022. In addition, small-cap stock funds, diversified stock funds, and mid-cap stock funds saw net outflows of $2.34 billion, $2.08 billion, and $9.98 billion, respectively.

In terms of industry fund flows, investors withdrew $0.539 billion from the consumer staples industry, ending a three-week streak of net buying. Real estate, industrial, and financial sectors also saw outflows of approximately $0.4 billion each.

In contrast to the outflows from stock funds, US bond funds attracted $6 billion in net inflows for the week, maintaining a streak of 17 weeks of fund inflows.

Among them, US short to intermediate-term government and treasury funds performed remarkably well, attracting around $3.13 billion in inflows, reaching the highest level in four weeks. Additionally, US taxable domestic funds and short to intermediate-term investment-grade funds also saw significant inflows of $2.21 billion and $1.17 billion, respectively.

At the same time, US money market funds also received a net inflow of $112.57 billion, marking the largest single-week inflow since December 2020.

Editor/ping