据澎湃统计， "Bets on China" trades are hot, with funds flowing continuously from A-shares during holidays to Hong Kong, US-related ETFs. The ChinaAMC STAR50 ETF listed in Hong Kong once rose over 200%, with many Chinese concept stock ETFs soaring together. Market observers have noticed that funds from other regions in Asia are flowing back into the Chinese stock market.
国庆期间，A股超强涨势因休市被迫暂停，不过这几日A股已提前“沸腾”，或为节后开市定下基调。
A股休市资金不断涌向港股、美股相关ETF，昨日在港上市科创50ETF一度大涨超230%，沪深300ETF、中证ETF等一同爆发。
据澎湃统计， $Bosera STAR 50 Index ETF (02832.HK)$Please use your Futubull account to access the feature.$Bosera SZSE Chinext Daily (2x) Leveraged Product (07234.HK)$Please use your Futubull account to access the feature.$CSOP STAR 50 Index ETF (03109.HK)$Please use your Futubull account to access the feature.$CSOP SZSE CHINEXT ETF (03147.HK)$ Leading the gains, the percentage gains on Wednesday were 106.19%, 60.22%, 28.79%, 22.19% respectively. The CSOP SSE Science and Technology Innovation Board 50 Index ETF once soared 234.29% intraday on Wednesday, but the gain narrowed to 28.79% by the close.
At the same time, foreign institutions heavily bought into Chinese concept stocks and A-share related ETFs.
Yesterday, tracking the A-share market in China $Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR.US)$ rose 7.49%, accumulating over 9% in the first two trading days of October.
$Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU.US)$ It closed up 15% with a cumulative increase of over 20% in the two trading days of October.
$VanEck ChiNext ETF (CNXT.US)$ It closed up 8.76% with a cumulative increase of nearly 16% in the two trading days of October.
$Kraneshares Tr Bosera Msci China A Sh Etf (KBA.US)$ It closed up 7.23% with a cumulative increase of over 9% in the two trading days of October.
$iShares MSCI China A ETF (CNYA.US)$ It closed up 7.53% with a cumulative increase of over 8% in the two trading days of October.
Chinese concept stocks ETF continued its pre-holiday uptrend. $iShares MSCI China ETF (MCHI.US)$ Closed up 6.6% yesterday, with a cumulative increase of over 22% in the past 5 trading days. $KraneShares CSI China Internet ETF (KWEB.US)$ Closed up 6.4% yesterday, with a cumulative increase of over 31% in the past 5 trading days. $iShares China Large-Cap ETF (FXI.US)$ Rose 7.19% yesterday.
According to statistical data, in the week before the festival (September 23rd to September 27th), the assets of multiple Chinese concept stock ETFs such as KWEB, FXI, MCHI surged, and net inflows of funds reached new highs in nearly one or even three years.
Renowned hedge fund manager David Tepper publicly stated that he will increase the allocation of Chinese assets, and has purchased more 'everything' related to China in the United States after the rate cut, such as ETFs, futures, etc.
Current signs indicate that overseas hedge funds are accelerating their 'bet on China'. CITIC International strategist Yan Zhaojun stated that against the backdrop of the A-share and Hong Kong stock market holidays, the surge in the Hong Kong stock market trading volume perfectly reflects the characteristics of foreign capital and local Hong Kong funds entering the market successively due to fear of missing out.
Can we expect the future market?
As the trading frenzy intensifies with the 'bet on China', market observers have noticed funds from other Asian regions flowing back into the Chinese stock market.
Market observers indicate that funds which previously left the Chinese stock market for Japan and Southeast Asian stock markets are set to return. Last week saw net outflows from the stock markets of South Korea, Indonesia, Malaysia, and Thailand; BNP Paribas revealed that over $20 billion had been withdrawn from the Japanese stock market in the first three weeks of September. Eric Yee, Senior Portfolio Manager at Singapore's Atlantis Investment Management, mentioned reducing long positions in Asia to fund investments in Chinese stocks.
According to Bloomberg's latest interviews and surveys, Mount Lucas Management, a hedge fund from the United States, has established bullish positions on Chinese ETFs, while GAO Capital from Singapore and Timefolio Asset Management from South Korea have been buying Chinese blue-chip stocks.
In addition, market research institution DataTrek Research stated that, based on history, Chinese stocks still have room for growth.
The institution mentioned that comparing the relative performance of iShares Core MSCI China Index ETF (FXI) and SPDR S&P 500 Index ETF Trust (SPY) within a 100-day time frame, during years such as 2009, 2015, and 2023 with positive policy shifts, Chinese stocks outperformed U.S. stocks by over 30 percentage points, while currently only leading by 13 percentage points.
CITIC Securities' Chief Strategy Analyst Chen Guo believes that in this round of confidence reassessment, low PB companies in the Chinese stock market will be systematically reassessed, especially when the market confirms confidence in the bottom line of the Chinese economic and financial system and the absence of systemic risks, and confirms confidence that China can overcome the debt cycle deflation. Then, the Chinese stock market will no longer show a large number of companies with low PB or even lower PB.
Editor/Somer