Global investors are once again channeling funds into capital markets in the Chinese mainland. After months of outflows, these markets have recorded steady foreign inflows since early summer, signaling renewed confidence among international players.
Morgan Stanley reports that June and July saw two consecutive months of net inflows, and predicts that overseas capital will accelerate its entry into Chinese mainland markets in the months ahead.
Nomura Securities notes that in July, emerging market funds significantly trimmed their exposure to Indian equities while boosting allocations to the Chinese mainland and South Korea.
Hermitage Capital describes the current bull run as just getting started. Against a backdrop of global equity rebounds, the firm says international capital is returning to the Chinese mainland market, attracted by appealing valuations.
With continued market opening and clearer regulations, foreign investors are increasingly positioned for a sustained recovery in Chinese mainland equities.
Reference(s):
cgtn.com
