On Friday, renowned strategist Michael Hartnett from Bank of America and others cited EPFR Global data stating that investors heavily flowed into the Chinese stock market last week. As of Wednesday, Chinese Stock Funds received approximately 5.6 billion USD, marking the largest inflow in nine weeks.

The Political Bureau of the Central Committee of the Communist Party of China held a meeting on December 9 to analyze and study the economic work for 2025. For the first time, the meeting proposed to "strengthen extraordinary counter-cyclical adjustments" and reintroduced the implementation of "moderately loose monetary policy" after 14 years.

Hartnett believes that Chinese stocks may still have space to "outperform the Large Cap," predicting that the first quarter of next year is the entry point for non-USA stocks.

Considering that investors have massively bet on the strengthening of the dollar and the rising yields of US bonds, Hartnett warned of the risk of "overshooting" at the beginning of next year. He believes that as inflation continues to force the Federal Reserve to adopt a more hawkish stance, Bonds, Gold, and international stocks will become attractive Assets.

According to Goldman Sachs, as of the end of November, the Global allocation ratio for Chinese stocks was 6%. The data is based on early reports from funds covering over 25% of the funds monitored by EPFR, covering Global, Global excluding USA, Asia excluding Japan, and Global Emerging Markets funds.Mutual fundsThe allocation ratio for Chinese stocks is 6%. The data is based on early reports from over 25% of the funds covered by EPFR, which includes Global, Global excluding the USA, Asia excluding Japan, and Global Emerging Markets funds.

The MSCI Chinese Index has risen a cumulative 16% since the beginning of this year.

Editor/Somer