U.S. media reports that global investors are investing funds into funds that track Chinese stocks, and betting on the re -opening up of this world's second largest economy will continue to promote the market.
The Wall Street Journal reported that data from Lufutel Bai showed that so far this year, investors have further invested more than 2 billion in the United States Kyodo Fund and Exchange Fund (ETF) who purchase Chinese stocks.US dollars (the same below, about S $ 2.662 billion).This means that the net inflow of funds for five consecutive weeks of funds marked the reversal of the situation in the second half of last year. At that time, investors from the time from this fund to withdraw nearly $ 1 billion in funds.
After ending the dynamic clearance policy, China opened the border in early January this year; the dynamic clearing policy implemented before this year basically cut off the connection between Chinese consumers and other parts of the world.At present, Chinese company stocks have rebounded, and commodity prices have also risen. Investors try to seize the transaction opportunities brought by China.
The MSCI Ming Sheng China Index, which tracks the stocks of Chinese companies listed in the United States, Hong Kong and mainland China, has risen by about 45%from the low in October last year.About 45%.A basket of industrial metals traded in London -including aluminum, copper, lead, zinc, tin and nickel -just set the best January performance in more than ten years.
Jason Draho, head of the American asset allocation, said that relatively speaking, the growth prospects of China and some parts of Asia are more attractive than the United States.
The US stock market and bond markets have risen in 2023, but some investors are worried that the market popularity may turn, and the Fed may continue to increase interest rates to overheat economic cooling.At the same time, as the Fed's tightening policy plays a role in the entire economy, it is expected that the profitability of US companies will slow this year.
Dracho also said: "I think this year will see the profit growth of enterprises in China, and it may have increased significantly. In contrast, the profit in the United States will be flat or even decreased."
In recent weeks, economists have raised predictions on economic growth, because there are preliminary signs that Chinese consumers are recovering consumption in restaurants and bars and reopening for subway commuting.
The valuation of many Chinese companies has fallen to a very low level. At that time, the Chinese economy was under pressure due to strict epidemic prevention and control, and regulatory pressure related concerns hit the high -rise technology stocks in China.Although some investors have stated that after the waves that have begun to be promoted by re -opening and longing for Chinese stocks in the fall of last fall, they are no longer sought after, but they point out that the potential for profit growth and the recent decline in the US dollar are attracted investors in Chinese stocks attracted investorsWhere.
David Bianco, the chief investment officer of DWS Group, a $ 900 billion asset management company, said he has recently increased the opening of Chinese stocks because Chinese shares are valued at US stock valuations than U.S. stock valuations.Cheap.
White said when talking about Chinese technology stocks, "If the Chinese government let go a little and let them do their own things, will these golden goose get eggs, so that the valuation of these stocks will rebound?"
