From the latest signs, the global market's enthusiasm for assets in China shows no signs of diminishing.

According to a report by Goldman Sachs, under the far-exceeding expectations of the Chinese government's stimulus measures, global hedge funds are flocking to the Chinese stock market. Not only hedge funds and speculators, many foreign long-term investors are now worried about missing out on the opportunity. According to data from LSEG Lipper, foreign exchange-traded funds focusing on Chinese stocks received $2.4 billion USD inflow in the last three trading days of September.

In terms of the market, Chinese concept stocks surged significantly on Wednesday night,$NASDAQ Golden Dragon China (.HXC.US)$increasing by 4.94%.

In terms of individual stocks, $Agora (API.US)$ skyrocketing by about 80%.$Youdao (DAO.US)$Increased by 37%,$KINGSOFT CLOUD (03896.HK)$Risen by over 22%,$Lufax (LU.US)$Rose by about 13%,$Bilibili (BILI.US)$Rose by about 11%.

$NetEase (NTES.US)$,$Daqo New Energy (DQ.US)$,$Yum China (YUMC.US)$,$Tencent Music (TME.US)$Both Ctrip and Trip.com increased by over 7%.$H World Group (HTHT.US)$And.$ZTO Express (ZTO.US)$rose more than 6%$iQIYI (IQ.US)$,$ZEEKR (ZK.US)$and$KE Holdings (BEKE.US)$Increase by more than 5%,$PDD Holdings (PDD.US)$,$Li Auto (LI.US)$,$Baidu (BIDU.US)$and$JD.com (JD.US)$ And$Vipshop (VIPS.US)$Both rose by over 4%.

Meanwhile, FTSE China A50 futures rose nearly 2% again.

Hong Kong stocks welcomed a strong start to October.

On October 2nd, Hong Kong stocks surged at the opening of October, with all three major indexes rising sharply in the morning to reach high points. The Hang Seng Index rose over 7% at one point.$Hang Seng TECH Index (800700.HK)$Once rose more than 10%, continued to consolidate strongly in the afternoon.$Hang Seng Index (800000.HK)$Closed up 6.2% at 22443.73 points, hitting a high since January 2023; Hang Seng Tech Index rose 8.53% to 5157.08 points, setting a new high since February 2022; Hang Seng Index rose 7.08% to 8041.27 points, reaching a new high since February 2022.$Hang Seng China Enterprises Index (800100.HK)$Rising 7.08% to 8041.27 points, setting a new high since February 2022.

Despite the absence of southbound funds, the market still reached a historically high turnover of 434.017 billion Hong Kong dollars. Mainland real estate and China-affiliated brokerage surged, with the Wind China-affiliated brokerage index up over 35%, and the Wind mainland real estate index.$SSE Real Estate Index (000006.SH)$Rising nearly 21%, with RonshineChina (03301.HK) up nearly 400%, Agile Group (03383.HK) rising by 160%, and over 10 mainland real estate stocks up over 100%.$HUARONG INT FIN (00993.HK)$Rises over 400%, swhyhk surges over 200%.

Mainland real estate stocks mostly rise, $RONSHINECHINA (03301.HK)$ up nearly 400%, $AGILE GROUP (03383.HK)$ up 160%,$ZHUGUANG HOLD (01176.HK)$Increased by 125.8%,$SINO-OCEAN GP (03377.HK)$Increased by 103.3%,$KWG GROUP (01813.HK)$Increased by 97.9%,$R&F PROPERTIES (02777.HK)$Increased by 89.2%.

Many China-affiliated brokerage stocks rose, with Huarong Int Fin up over 400%, Swhyhk up over 200%, China Merchants up 81.3%, Orient up 51.7%, CSC up 48%, Guolian up 39.8%, Citic Sec up 39.4%.

From the industry performance perspective, the Hang Seng Industry Index rose across the board during the day, with the real estate and construction industry up 11.96%, non-essential consumer goods up 7.56%, and news technology industry up 6.09%.

From the market perspective, most of the Wind Concept sectors rose, with the China-affiliated brokerage index up 35.49%, online education index up 32.74%, and real estate trust index up 23.14%. In terms of declines, the lottery index led the way down by 7.43%, the Hong Kong retail index fell by 1.9%, and the luxury goods index dropped 1.89%.

Overseas asset management institutions increase their allocation of Chinese assets.

In recent times, large overseas asset management institutions have gradually increased their investment allocation towards Chinese assets, especially amidst global macroeconomic uncertainties, showing a strong preference for the Chinese stock market. Recently, billionaire hedge fund founder David Tepper publicly stated that following the Fed's interest rate cut, his largest investment bet is now on Chinese stocks, demonstrating his further confidence in the Chinese capital markets.

Tepper mentioned that he is actively positioning in the Chinese stock market. "I think this is a comprehensive change," Tepper mentioned in a recent public speech, "we will hold Chinese stocks for a longer period and in larger quantities." This shift in attitude signals a growing optimism among global investors towards the Chinese market.

In fact, Tepper has not only increased the scale of his investments in Chinese stocks but has also significantly raised the investment limit on Chinese stocks. He mentioned that he may have doubled his investment in Chinese stocks, especially reaping gains in some major technology stocks. He emphasized that he has bought more "all" Chinese stocks, specifically mentioning some large technology giants. These companies, as representatives of the Chinese technology industry, have received significant attention from international investors and hold important positions in the global technology market.

Templeton is not the only investor bullish on the Chinese stock market. With a recent uptrend in the Chinese stock market, many overseas exchange-traded funds (ETFs) tracking the Chinese stock market have also shown strong performance. Among them, several Chinese ETF funds that are widely popular in the US market continue to rise, especially against the backdrop of investors' general optimism about the potential for China's economic recovery, greatly enhancing the appeal of these ETFs.

For example, $KraneShares CSI China Internet ETF (KWEB.US)$Please use your Futubull account to access the feature.$iShares China Large-Cap ETF (FXI.US)$Please use your Futubull account to access the feature.$iShares MSCI China ETF (MCHI.US)$ and $Invesco Golden Dragon China ETF (PGJ.US)$ Several major China ETFs have recorded consecutive gains in recent trading days. This indicates a significant increase in demand from overseas investors for Chinese assets.

Analysts point out that the continuous rise of these ETFs reflects the market's optimistic expectations for China's economic policies and capital market prospects. With China's flexible macroeconomic responses and supportive measures being introduced, investors have stronger expectations for the future performance of the Chinese market.

Apart from Tapie Investment, Goldman Sachs strategist Scott Rubner also holds a positive view on the Chinese stock market in a recent report. "I am bullish on the Chinese stock market this time," Rubner said. "I have never seen such high daily demand for Chinese stocks." This statement reveals the confidence of overseas institutions in Chinese assets and the renewed global capital inflow into the Chinese market.

Rubner's views align with the current market trends. With the end of the Fed rate-hike cycle, it is widely expected that monetary policies of major global economies may become more accommodative. As China is a major force in the emerging markets, providing a solid foundation for the rise of its capital markets. In this backdrop, the views of Rubner and other strategic experts undoubtedly provide more confidence support for market participants.

Editor/Somer