Financial Services Association, Oct. 12 (Editor Shi Zhengcheng) On the eve of the world-renowned press conference on Saturday, the latest market capital statistics show that the amount of capital flowing into Chinese equity funds in the past week has exploded in an unprecedented amount. At the same time, well-known Bank of America analyst Harnett and Mark Morbius, the “father of emerging markets,” have also joined Goldman Sachs, advising investors to take a rational look at Chinese assets.

Bank of America on Friday quoted EPFR Global data as saying that in the week ending October 9, investors injected a record $39.1 billion into Chinese equity funds.

It is worth mentioning that this trend of buying Chinese assets is clearly visible not only in mainland China, but also in the US stock market. According to brokerage data, BlackRock's $iShares China Large-Cap ETF (FXI.US)$ Between September 30 and October 10, the asset size directly doubled from $4.8 billion to $10.749 billion. The last time this fund reached the scale of 10 billion US dollars was in 2009.

Another one that is betting on China Science and Technology Network stocks $KraneShares CSI China Internet ETF (KWEB.US)$ The asset size has also risen from 6.5 billion US dollars to 7.551 billion US dollars in the past ten days. “3x more FTSE China ETF” favored by more gamble investors $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ The asset size directly doubled from $1.249 billion to $2.572 billion. This round of rise also enabled the fund's asset size to break through the $1 billion mark for the first time in 15 years since its establishment.

Of course, the rapid influx of capital is closely related to the crazy mood of the market. With adjustments over the past few days, Wall Street strategists have also begun to pay attention to more rational investment logic.

Michael Hartnett (Michael Hartnett), chief investment strategy analyst at Bank of America International Research, said in the latest report that it is recommended to buy Chinese stocks when there is any weakness.

The Bank of America strategy team believes that as economic growth forecasts are raised and bond yields rise, the proportion of assets allocated to China will increase. In their view, there are some hints in the policy that the capital market will “be actively used to boost domestic investment sentiment and demand. Harnett wrote, “We will buy any China dips (We buy any China dips).”

At the same time, Mark Morbius, a well-known investor who has long been investing in emerging markets, has also publicly voiced a positive outlook on the long-term performance of Chinese assets.

In an interview with the media, Morbius said that China will definitely try to further boost the market and continue to attract foreign investment. Undoubtedly, adjustments will also occur during this process.

Morbius further stated that almost half of investors in emerging markets will track (emerging markets) indices. Given China's high weight in most such indices, this means that foreign investors must allocate more capital to China. For China, this is also a “win-win” situation — introducing policies to boost other markets such as real estate, while boosting the local capital market and attracting foreign capital inflows.

Regarding this week's market fluctuations, Morbius emphasized long-term confidence in Chinese assets, saying that China is moving towards a “more bullish” long-term market (More Bullish Long-Term Market). If you listen to this policy term on private economic development, you can feel the huge transformation.

Morbius began investing in developing economies in the 80s of the last century, and was in charge of the Templeton Emerging Markets Group for over 30 years. Unlike most Wall Street experts who review the Chinese market across the Pacific, Morbius began his exposure to the Chinese market more than 50 years ago — as early as 1973, he wrote the book “Trading with China” and visited China many times. He bought a house in Shanghai almost 20 years ago, but it didn't take a few years to sell it.

Morbius said that foreign investors, especially large investment institutions, have also changed their views on the Chinese market. These people have been seriously injured in the past few years, but now this situation is changing. “As capital flows in, the total pool of capital entering emerging markets will expand,” he said. You'll see the whole market change.”

Editor/Somer