On the evening of October 3, the latest information disclosed by HKEX shows that JPMorgan made purchases on September 27, buying$CPIC (02601.HK)$H-shares worth 0.267 billion Hong Kong dollars, $BYD COMPANY (01211.HK)$ 1.791 billion Hong Kong dollars, $TSINGTAO BREW (00168.HK)$ 0.242 billion Hong Kong dollars, $HKEX (00388.HK)$ 1.813 billion Hong Kong dollars. In other words, within one day, JPMorgan spent over 4.1 billion Hong Kong dollars to sweep up Chinese assets.

In addition, data disclosed on the evening of October 2 showed that J.P. Morgan increased its holdings by 1.771 billion Hong Kong dollars on September 26.$PING AN (02318.HK)$H shares, increased its holdings in CM Bank's H shares by 0.895 billion Hong Kong dollars on September 25.

On October 3, HSBC upgraded its rating on Chinese mainland stocks from Neutral to Overweight. Citigroup also upgraded the ratings of several A-share companies, upgrading them to Buy with a target price of 64.50 yuan;$Gree Electric Appliances,Inc.of Zhuhai (000651.SZ)$ $Hangzhou Robam Appliances (002508.SZ)$Rating upgraded to buy with a target price of 30.10 yuan;$Hisense Visual Technology (600060.SH)$Rating upgraded to neutral with a target price of 23.90 yuan. Citigroup also raised the $BABA-W (09988.HK)$ target price from 115 Hong Kong dollars to 135 Hong Kong dollars, and maintained a 'buy' rating. Deutsche Bank raised the $XPENG-W (09868.HK)$ target price from 55 Hong Kong dollars to 67 Hong Kong dollars. Earlier, BlackRock also upgraded its rating of Chinese stocks from neutral to overweight.

Despite the retracement in the Hong Kong stock market on the same day,$Hang Seng H-Share Index ETF (02828.HK)$The index fell by 1.58%, but fund managers indicate that China's outlook has changed due to stimulus measures. Fredrik Bjelland, portfolio manager of the Skagen Kon-Tiki emerging markets fund, said, 'There is still a long way to go for the rebound, and China's valuation is very attractive. In addition, compared to history, global investors have very light positions.' Laura Wang from Morgan Stanley stated that with the possibility of the Chinese government announcing fiscal measures to boost the already announced stimulus plan, the Chinese stock market may rise by another 10% to 15%.

Foreign capital is sweeping up Chinese assets.

More and more data confirms that during this round of A-shares and Hong Kong stock market rallies, foreign capital has been actively buying Chinese assets.

On the evening of October 3, information disclosed by HKEX revealed that JPMorgan increased its holdings by approximately 6.52 million shares on September 27, with an average fill price of 274.5244 Hong Kong dollars, involving about 1.791 billion Hong Kong dollars. JPMorgan's shareholding in BYD H shares rose from 4.85% to 5.45%. $BYD COMPANY (01211.HK)$ On the evening of October 3, information disclosed by HKEX revealed that JPMorgan increased its holdings by approximately 6.52 million shares on September 27, with an average fill price of 274.5244 Hong Kong dollars, involving about 1.791 billion Hong Kong dollars. JPMorgan's shareholding in BYD H shares rose from 4.85% to 5.45%.

$HKEX (00388.HK)$ 也获摩根大通大幅增持。港交所披露文件显示，9月27日，摩根大通以每股均价296.48港元增持约6.1164 million股香港交易所股份，涉资约1.813 billion港元。此次增持后，摩根大通对香港交易所的最新持股数约为81.42 million股，持仓比例由5.93%上升至6.42%。

数据还显示，9月27日，摩根大通以每股均价26.25港元增持约10.14 million股 $CPIC (02601.HK)$ ，涉资约0.267 billion港元。摩根大通对中国太保H股的持仓比例由6.98%增加至7.35%。

In addition, $TSINGTAO BREW (00168.HK)$ 也获摩根大通增持。根据香港联交所最新权益披露资料显示，摩根大通于9月27日以每股均价55.42港元增持约4.375 million股青岛啤酒H股，涉资约0.242 billion港元。此次增持后，摩根大通对青岛啤酒H股的最新持仓比例由7.60%上升至8.27%。

$Ping An Insurance (601318.SH)$Also significantly increased its holding in Ping An Insurance. On October 2, data disclosed by the Hong Kong Stock Exchange showed that on September 26, JPMorgan increased its holdings of 39.86 million H-shares of Ping An Insurance, with an average price of HKD 44.43 per share, totaling approximately HKD 1.771 billion. After this increase, JPMorgan's latest holding of H-shares in Ping An Insurance is approximately 0.617 billion shares, with a latest holding ratio of 8.28%, compared to the previous 7.74%.

JPMorgan also increased its holding in $CM BANK (03968.HK)$ CM Bank H-shares. On October 2, data from the Hong Kong Stock Exchange showed that on September 25, JPMorgan increased its holdings of 24.84 million H-shares of CM Bank, at an average price of HKD 36.045 per share, costing approximately HKD 0.895 billion. After the increase, JPMorgan's latest holding of H-shares in CM Bank is approximately 0.3 billion shares, with a holding ratio of 6.52%.

It is understood that JPMorgan is one of the largest financial services institutions in the USA. In addition to using proprietary funds for buying and selling actions, many funds are also operated for clients, the majority of which are usually foreign capital.

In September, JPMorgan released research reports on A-shares, stating that the unexpected call for strong policy stimulus at the Political Bureau meeting led to a strong rebound in A-shares. This rebound was driven by three main factors: a decrease in short selling ratio, an increase in margin trading, and excitement among investors. Specifically, as of September 30, the short selling ratio in the Hong Kong market dropped from 21.8% on September 16 to 10.2%; the proportion of A-shares margin trading to total trading volume increased from 7.4% on September 20 to 10.5% on September 27.

JPMorgan believes that the excitement of retail investors and the surge in new account openings are proof that the global exposure of equity funds to the Chinese stock market may be narrowing. JPMorgan also predicts that from September 23 to 27, A-share ETFs saw a net inflow of RMB 59.3 billion (approximately USD 8.5 billion). JPMorgan stated that the sustainability of the A-share rebound depends on the strength of fiscal policy, macro data, and earnings revisions.

Some market observers have expressed that a wave of funds that earlier left the Chinese stock market to invest in Japan and Southeast Asian stock markets are now repositioning assets in China. BNP Paribas noted that in the first three weeks, over $20 billion funds were withdrawn from the Japanese stock market, and last week saw net outflows from stocks in South Korea, India, Indonesia, Malaysia, and Thailand.

In a report on Wednesday, BNP Paribas strategist wrote, "We believe some foreign investors are reducing their overweight positions in Japan and reallocating back to China." It is important to note that this shift is still at an early stage. Eric Yee, Senior Portfolio Manager at Singapore's Atlantis Investment Management, stated, "We are reducing long positions elsewhere in Asia to provide funding for purchases in China."

Several stock ratings have been upgraded.

The latest research reports show that Citigroup has upgraded Gree Electric Appliances to a buy rating with a target price of 64.50 yuan; upgraded Hangzhou Robam Appliances to a buy rating with a target price of 30.10 yuan; and upgraded Hisense Visual Technology to a neutral rating with a target price of 23.90 yuan.

In addition, Citigroup raised Alibaba's Hong Kong stock target price from 115 Hong Kong dollars to 135 Hong Kong dollars while maintaining a 'buy' rating. Citigroup believes that with a series of monetary and fiscal support measures introduced by the Chinese government, there is potential to improve wealth effects, boost consumer sentiment, and Alibaba is expected to enhance investment and marketing during "Singles' Day" to promote growth in GMV on its e-commerce platform.

Deutsche Bank has also raised the target price for Xpeng. Deutsche Bank's research analyst Bin Wang stated in a report that Xpeng is expected to maintain strong sales performance for the rest of the year. Xpeng's deliveries in September increased by 39% year-on-year, reaching the highest monthly delivery level since the company was founded, driven by strong demand for the Mona M03 model in the market. Wang estimates that Xpeng will deliver 11,000, 15,000, and 20,000 units of the Mona M03 model in October, November, and December, respectively. The analyst maintains a 'buy' rating on the stock and raised the target price from 55 Hong Kong dollars to 67 Hong Kong dollars.

It is noteworthy that HSBC recently upgraded its rating on Chinese mainland stocks from neutral to overweight. HSBC strategist Alastair Pinder wrote in a report dated October 3rd, stating that due to still relatively low valuations and light investor positioning, joining this upward trend is still timely. The rating on Chinese mainland stocks has been upgraded from neutral to overweight. Their valuation model indicates that based on fundamentals, Chinese mainland stocks are still undervalued by 15%. The report further adds that investors are currently underweight Chinese mainland stocks by 230 basis points relative to the benchmark, implying potential inflows.

Prior to HSBC, BlackRock had already upgraded its rating on Chinese stocks from neutral to overweight.

BlackRock Investment Institute stated that, considering the discount of Chinese stocks relative to stocks in developed markets approaching record levels, and the potential catalysts that may stimulate investors to reenter the market, there is still room for moderate shareholding of Chinese stocks in the short term. BlackRock's Chief China Economist, Song Yu, believes that, driven by policies from the central bank and other departments, the support and measures from other departments in the future are also worth anticipating. With the continuation of favorable policies, it is expected to see sustained positive market feedback.

Editor/Somer