Foreign investors are increasingly betting on China's equity market, driven by optimism over the recent wave of new economic policies aimed at spurring growth and recovery, international media have reported.
Global hedge funds are pouring money into Chinese stocks at unprecedented levels, including notable names like U.S.-based Mount Lucas Management, Singapore's GAO Capital, and South Korea's Timefolio Asset Management, signaling a robust bullish stance on the Chinese markets.
Despite China's stock markets being closed for the recent seven-day National Day holiday, Chinese-related exchange-traded funds in Tokyo reached record highs last Friday, reflecting growing confidence among Japanese investors in China's stimulus efforts, according to Nikkei Asia.
Following the September meeting of the Political Bureau of the Communist Party of China Central Committee, which introduced a series of economic measures, Goldman Sachs upgraded its outlook on Chinese stocks to \"overweight,\" as reported by Bloomberg.
\"A massive move in a short amount of time for the world's second largest economy and that's going to have ripple effects lifting all emerging markets,\" said Will McGough, director of Investments at Prime Capital Financial, highlighting the significant impact of China's stimulus measures.
The measures have already boosted Chinese indexes and currency, European luxury stocks, global miners, and commodity prices, as noted by the Wall Street Journal. However, the long-term direction of the Chinese economy will hinge on China's forthcoming economic moves in the coming months.
At a press conference on Tuesday, Zheng Shanjie, head of the National Development and Reform Commission, outlined a series of actions to further boost the economy. A key announcement was the advance release of investment projects worth 200 billion yuan ($14.14 billion) planned for next year, aimed at supporting local governments in accelerating preliminary work and construction.
The China Finance 40 Forum commented that the government's plan to front-load the 200 billion yuan could drive a significant uptick in economic growth in the fourth quarter, helping China achieve its annual target of five percent GDP growth.
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Foreign investors increase bets on China as sentiments turn bullish
cgtn.com
