$YINN 241018 40.00C$ Foreign institutional investors are all...
$YINN 241018 40.00C$ Foreign institutional big players are all buying on dips.
Caixin reporters on October 12 (Editor Shi Zhengcheng) coinciding with the eve of a highly anticipated global conference on Saturday, the latest market fund statistics released show an unprecedented massive influx of funds into Chinese stock funds in the past week, and Bank of America's well-known analyst Harnett, 'Father of Emerging Markets' Mark Mobius have joined Goldman Sachs camp, advising investors to rationally bullish on Chinese assets.
Bank of America cited data from EPFR Global on Friday, indicating that in the week ending October 9, investors poured a record $39.1 billion into Chinese stock funds.
It is worth mentioning that this rush to buy Chinese assets is not only happening in China but also clearly visible in the US stock market. Brokerage data shows that BlackRock's iShares China Large Cap ETF (FXI) saw its assets double from $4.8 billion to $10.749 billion between September 30 and October 10. The last time this fund reached a hundred billion dollars was back in 2009.
Another china etf that bets on network technology stocks, KraneShares CSI China Internet ETF, assets have also increased from 6.5 billion US dollars to 7.551 billion US dollars in the past ten days. The more aggressive investors prefer the assets of the '3 times long FTSE China ETF' (YINN) have directly doubled from 1.249 billion US dollars to 2.572 billion US dollars. This round of increase also made the fund's assets break through the 1 billion US dollar mark for the first time in its 15-year history.
Of course, the rapid inflow of funds is closely related to the market's frenzied sentiment. With the adjustments in the past few days, Wall Street strategists have also started to focus on more rational investment logic.
Bofa's Chief Investment Strategist analyst Michael Hartnett stated in the latest report that he recommends buying when Chinese stocks show any weakness.
Bofa's strategy team believes that as economic growth forecasts are raised and bond yields rise, the proportion of assets allocated to China will increase. In their view, there are some implications in the policy that the capital markets will be actively used to boost domestic investment sentiment and demand. Hartnett wrote: 'We buy any China dips.'
At the same time, renowned investor Mark Mobius, who has long been deeply involved in emerging market investments, has also publicly expressed a positive outlook on the long-term performance of Chinese assets.
In an interview with the media, Mobius stated that China will definitely try to further boost the market and continue to attract foreign investment. Without a doubt, adjustments will also occur in this process.
Mobius further stated that almost half of emerging market investors track emerging market indexes. Given China's high weight in most of these indexes, it means that foreign funds must allocate more money to China. For China, this is also a 'win-win' situation—by issuing policies to boost real estate and other markets while boosting the local capital markets and attracting inflows of foreign capital.
Regarding this week's market volatility, Mobius emphasized his long-term confidence in Chinese assets, stating that China is moving towards a 'more bullish' long-term market. Just listen to the wording used in this policy change about the development of the private economy to feel the huge shift.
Mobius has been investing in developing economies since the 1980s, leading the Templeton Emerging Markets Group for over thirty years. Unlike most Wall Street experts who comment on the Chinese market from across the Pacific, Mobius's engagement with the Chinese market dates back over 50 years ago - as early as 1973 when he wrote a book "Trading with China" and visited China several times. About twenty years ago, he bought a house in Shanghai, but sold it off after holding it for a few years.
(Mobius ate wonton noodles in Guangdong at the end of last year, Source: Mobius's personal website)
Mobius stated that foreign capital, especially large institutional investors, are also changing their views on the Chinese market. These individuals have been heavily hit over the past few years, but now the situation is changing. He said: "With the inflow of funds, the total capital pool entering emerging markets will expand. You will see changes in the entire market."
Bank of America cited data from EPFR Global on Friday, indicating that in the week ending October 9, investors poured a record $39.1 billion into Chinese stock funds.
It is worth mentioning that this rush to buy Chinese assets is not only happening in China but also clearly visible in the US stock market. Brokerage data shows that BlackRock's iShares China Large Cap ETF (FXI) saw its assets double from $4.8 billion to $10.749 billion between September 30 and October 10. The last time this fund reached a hundred billion dollars was back in 2009.
Another china etf that bets on network technology stocks, KraneShares CSI China Internet ETF, assets have also increased from 6.5 billion US dollars to 7.551 billion US dollars in the past ten days. The more aggressive investors prefer the assets of the '3 times long FTSE China ETF' (YINN) have directly doubled from 1.249 billion US dollars to 2.572 billion US dollars. This round of increase also made the fund's assets break through the 1 billion US dollar mark for the first time in its 15-year history.
Of course, the rapid inflow of funds is closely related to the market's frenzied sentiment. With the adjustments in the past few days, Wall Street strategists have also started to focus on more rational investment logic.
Bofa's Chief Investment Strategist analyst Michael Hartnett stated in the latest report that he recommends buying when Chinese stocks show any weakness.
Bofa's strategy team believes that as economic growth forecasts are raised and bond yields rise, the proportion of assets allocated to China will increase. In their view, there are some implications in the policy that the capital markets will be actively used to boost domestic investment sentiment and demand. Hartnett wrote: 'We buy any China dips.'
At the same time, renowned investor Mark Mobius, who has long been deeply involved in emerging market investments, has also publicly expressed a positive outlook on the long-term performance of Chinese assets.
In an interview with the media, Mobius stated that China will definitely try to further boost the market and continue to attract foreign investment. Without a doubt, adjustments will also occur in this process.
Mobius further stated that almost half of emerging market investors track emerging market indexes. Given China's high weight in most of these indexes, it means that foreign funds must allocate more money to China. For China, this is also a 'win-win' situation—by issuing policies to boost real estate and other markets while boosting the local capital markets and attracting inflows of foreign capital.
Regarding this week's market volatility, Mobius emphasized his long-term confidence in Chinese assets, stating that China is moving towards a 'more bullish' long-term market. Just listen to the wording used in this policy change about the development of the private economy to feel the huge shift.
Mobius has been investing in developing economies since the 1980s, leading the Templeton Emerging Markets Group for over thirty years. Unlike most Wall Street experts who comment on the Chinese market from across the Pacific, Mobius's engagement with the Chinese market dates back over 50 years ago - as early as 1973 when he wrote a book "Trading with China" and visited China several times. About twenty years ago, he bought a house in Shanghai, but sold it off after holding it for a few years.
(Mobius ate wonton noodles in Guangdong at the end of last year, Source: Mobius's personal website)
Mobius stated that foreign capital, especially large institutional investors, are also changing their views on the Chinese market. These individuals have been heavily hit over the past few years, but now the situation is changing. He said: "With the inflow of funds, the total capital pool entering emerging markets will expand. You will see changes in the entire market."
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