Chinese Assets Stage a "Powerful Rebound"!

After years of controversy, international asset management institutions are reassessing the investment value of the Chinese market, driven by soaring stock prices and technological breakthroughs that are attracting global capital back.

Data from Goldman Sachs Group Inc. shows that last month, the activity of global hedge funds in China's domestic stock market reached its highest level in recent years. This stands in stark contrast to 2021, when some clients labeled the Chinese market as "uninvestable."

Pacific Investment Management Co. (PIMCO) noted that investors are now more concerned about missing opportunities than about risks. Official data indicates rising foreign inflows across various asset classes, with such synchronized growth occurring only three times in the past decade.

Collectively, these signals suggest the Chinese market is on an upward trajectory. The impressive $2.7 trillion rally in China's domestic stock market this year is too significant to ignore. With global funds still under-allocated, there remains substantial room for increasing positions.

Joseph Zhang, a portfolio manager at Fidelity International, stated, "Global investor interest in Chinese assets has noticeably increased. This year is different. The revaluation of Chinese assets is no longer driven solely by policy-induced enthusiasm but is fueled by improving fundamentals. Investor confidence will likely strengthen further."