According to the Wise Finance app, Mark Mobius, a veteran on Wall Street with the nickname 'Emerging Markets Godfather,' recently stated in an interview that if policymakers continue to introduce measures to support the market, the rebound of the Chinese stock market may continue. Mobius's bullish view is perfectly aligned with the views of Wall Street financial giants such as Goldman Sachs and Citigroup, all of whom believe that the crazy surge that began in late September in the Chinese stock market (including Hong Kong and A-shares) is not a flash in the pan, but marks the beginning of a new epic 'long-term bull market rally' in the Chinese stock market driven by strong expectations of government stimulus policies for the financial market and the real economy.

"Bear market sentiment has been completely shattered, so we can expect the market to continue to be strongly bullish," said Mark Mobius, Chairman of the Mobius Emerging Opportunities Fund and an investor in emerging markets for decades, in an email on Monday. He also emphasized in the interview that the duration of this rebound in the Chinese stock market will depend on 'the various measures taken by the Chinese government to increase market liquidity.'

The 88-year-old globally renowned fund manager Mark Mobius, who has turned bullish on the Chinese stock market earlier this year, mainly due to the significant measures introduced by the government to support the real estate industry. Since late September, the government has successively announced the latest stimulus measures including interest rate cuts, reserve requirement ratio cuts, billion-level liquidity support, as well as the high-level policy tone to boost the private economy, stimulate consumer spending, and comprehensively improve resident incomes to boost the economy. These policies have led to rapid spikes in the benchmark indices of the Hong Kong and A-share markets in just a few trading days.

After a series of policy combinations were announced, Mobius quickly stated that the intensity and timing of this round of stimulus policies exceeded expectations, rejuvenating the Chinese stock market. In the short term, the rebound brings significant investment opportunities to industries such as technology and consumer goods.

Since September 24th, the Chinese government has introduced a package of stimulus measures to boost the Chinese economy, and at the same time, provided incredibly strong liquidity support for the domestic financial market, striving to revive the continuously sluggish real estate industry amid the throes of a debt crisis. This comprehensive policy has bolstered global investors' confidence in the Hong Kong and A-share markets. It is understood that the benchmark index of the Hong Kong stock market—Hang Seng Index—has risen by over 35% in the past month up to October 7th, becoming the best-performing benchmark index among over 90 stock indices globally during the same period this year.

In a recent interview, JPMorgan still emphasizes its bullish view on the Chinese stock market. JPMorgan stated that under the policy support for economic growth, the Chinese stock market will have a greater range of upward space. However, when it comes to the resumption of trading in the A-share market after the National Day Golden Week holiday, he is not eager to blindly increase positions. "We are waiting for the market to stabilize, so the post-holiday market reopening is not a time for a large influx," he stated in the interview.

Before the opening of the A-share market on Tuesday, the bullish sentiment on Wall Street was already very strong.

Since the start of the Golden Week holiday last week, the overall Hong Kong stock market has continued its strong upward trend since the end of September. However, on Tuesday, it saw a sharp pullback under profit-taking pressure. Since the Chinese government introduced a heavyweight stimulus package on September 24, the Hang Seng Index has surged by as much as 18%, including Alibaba, Tencent, and Baidu, among other Chinese tech giants. The HANG SENG TECH Index, the 'wind vane' of Chinese tech stocks, has seen an even stronger increase compared to the Hang Seng Index, soaring by 33% since September 24.

In the US stock market, the epic bullish trend towards the Chinese stock market has spread to almost all ETFs associated with the Chinese stock market - especially leveraged ETFs betting long on the Chinese stock market, as well as Chinese concept stocks like Alibaba and Baidu. The 3x long FTSE China ETF (YINN.US) saw a remarkable increase during the National Day holiday, with a surge of up to 130% since September 24. The 3x short CSI 300 ETF (CHAU.US) also saw an equally astounding increase during the same period, rising by as much as 129%. Chinese concept stocks and leveraged bets on the Chinese stock market ETFs surged after a period of three years of sluggish performance, highlighting the strong bullish sentiment of foreign funds towards the Chinese stock market.

The trend of Chinese assets in the Hong Kong and US stock markets indicates that most Wall Street investment institutions are undoubtedly very optimistic about the opening of A-shares. During the National Day Golden Week period when A-shares were not trading, they significantly boosted Hong Kong and US market Chinese concept stocks, indicating that these foreign institutional investors are expecting a continued strong uptrend in A-shares after the reopening next week. As expected, by the close of trading on Tuesday, the Shanghai Composite Index rose by 4.59%, the ChiNext Price Index surged by over 17%, and the total turnover of the Shanghai and Shenzhen stock exchanges exceeded 3.4 trillion, setting a new record.

The government's massive stimulus plan has sparked a new wave of foreign capital inflows and a frenzy in upgrading investment ratings for the Chinese stock market. Major global asset management giant BlackRock Inc., as well as Wall Street financial giant Morgan Stanley, which have long been bearish on the Chinese stock market (including Hong Kong and A-shares), have also shifted to a bullish stance. These foreign institutions are using substantial funds to promote a large-scale rebound in the Chinese stock market. Wall Street investment banks and hedge fund institutions, which have been cautious about the Chinese stock market for a long time, have suddenly turned overwhelmingly bullish on both Hong Kong and A-shares.

BlackRock, which has long maintained a cautious stance on the Chinese stock market, recently stated that it has upgraded its rating on Chinese stocks from 'neutral' to 'overweight'. The institution believes that given the significant discount of the Chinese stock market compared to developed market stock markets approaching record levels, and the strong catalysts that may stimulate investors to re-enter the market, major institutions still have ample room to moderately increase their holdings of Chinese stocks in the short term.

Renowned billionaire investor David Tepper has advised investors to 'buy everything' related to China. Tepper founded the hedge fund Appaloosa Management in 1993. He attributes his significant bets on the Chinese stock market to the large-scale stimulus package introduced by China this week. Tepper, who followed the global AI trend in 2023, is now urging investors to 'buy everything' related to China and to sell overvalued US tech stocks such as Nvidia.

Goldman Sachs, known as the vanguard of the global stock market bull market, has raised its rating on the Chinese stock market to 'overweight' in its latest report, and has increased the target level of the CSI 300 Index from 4000 to 4600. On Tuesday, the CSI 300 Index closed at 4256.10 points. Goldman Sachs also raised the target level of the MSCI China Index, covering core Chinese assets such as Alibaba, Tencent, and Kweichow Moutai, from 66 to 84, compared to the MSCI China Index closing at 76 on Monday. In terms of industry allocation, Goldman Sachs stated that due to increased capital market activity and improved asset performance, it has raised insurance and other finance (such as brokerage, exchanges, and institutions) to 'overweight'. At the same time, Goldman Sachs maintains an 'overweight' position on Chinese internet and entertainment, technology hardware and semiconductors, consumer retail and services, and daily essentials.

Another Wall Street giant Citigroup recently released a research report stating that the benchmark index of Hong Kong stocks, the Hang Seng Index, is expected to be raised by 24% to 26,000 points by the end of June 2025, with the year-end target set at 28,000 points. Citigroup raised the target levels for the CSI 300 and MSCI China Index in the first half of next year to 4,600 and 84 points respectively, and set the year-end targets at 4,900 and 90 points.

Global investment institutions such as Wall Street are witnessing significant funds flowing into the Indian and Japanese-Korean stock markets, seemingly starting to take profits and flowing into the more competitively valued Chinese stock market, which is expected to continue benefiting from strong stimulus policies. The Nifty index, the benchmark stock index in India, fell by 4.5% last week, marking the worst weekly performance since June 2022.

According to Goldman Sachs India trader Nikhilesh Kasi, the most frequently asked question from clients in the past two weeks has been 'Are we seeing funds flowing from India to China?' To this, Kasi has clearly answered 'Yes' and explained that the trend is very clear based on the fund flow they have observed.

The latest research report released by Zhongjin stated that EPFR's latest fund flow data showed the first net inflow of overseas active funds in 14 months. The report from Zhongjin indicates that passive overseas funds continue to flow in as the main inflow. As of last Wednesday (September 26 to October 2), passive funds flowed into Hong Kong stocks and ADRs with a scale of 2.87 billion USD, which was 3 to 4 times the size of the previous statistical week, reaching a new high since 2016. The core focus of foreign inflows was that last week, overseas active funds turned into a net inflow of 0.19 billion USD in A shares, 0.12 billion USD in Hong Kong stocks and ADRs, although the scale is not large, it marks the first net inflow after 65 consecutive weeks of outflows since the end of June 2023. In terms of region, active funds mainly focused on investing in China and the entire Asian region. In emerging markets, the scale ratio of passive to active funds is close to 2:8, therefore active funds dominate absolutely.

The core of a cautious stance: The specific policy implementation on the fiscal end needs to drive economic growth

In this once sluggish stock market, some opposing voices still exist. According to these more cautious analysts, the direction of the Chinese stock market depends on whether the government will take more specific stimulus measures to support economic growth and whether it will wait for the government to use real money to support its stimulus plan commitments.

Rajiv Jain, the fund manager of the GQG Partners Emerging Markets Equity Fund with assets under management as high as $23 billion, expects that this rebound could be short-lived, while Nomura's economists warn that the risk of a bubble burst similar to that of 2015 still exists.

The sudden emergence of a new bull market in the Chinese stock market has triggered concerns among some analysts, questioning whether the surge has gone too far, too fast. Some analysts doubt whether the Chinese market can continue to recover if deep-rooted economic issues (such as long-standing imbalance in real estate supply and demand) remain unresolved.

Although the stock market response is generally very positive, it will to some extent depend on whether there will be specific and strong fiscal stimulus plans implemented. The Amundi Investment Solutions strategy team, including Alessia Berardi, wrote in a report. In the short term, a combination of a series of monetary easing policies and targeted substantial housing support should bring temporary stimulus effects, but a more sustainable recovery may require more decisive fiscal actions.

Tai Hui, Chief Market Strategist for J.P. Morgan Asset Management in the Asia-Pacific region, said in a media interview, "For me, the direction and change in attitude of authorities are very important, but the market expects specific consumer spending during the Golden Week holiday and how the government follows through with fiscal support will be key catalysts to maintaining the strong stock market rally we have seen so far. Some foreign investors may choose to wait for the economy to bottom out in economic data and wait for new policies to pivot for consolidation."

Lynn Song, Chief Economist for ING Bank in the Greater China region, said," There are still some significant challenges that need to be addressed, and this is not an easy path. We need to ensure that a series of policy measures can effectively stabilize the downward trend of the real estate market, rather than just causing hot money to flow into the stock market. Lynn Song also stated that if the Chinese stock market cools down, bonds may benefit. "If there are any issues in the market going forward, we will certainly face risks of returning to a similar environment as in the past few months."