From Global Times: 2024-05-10 07:35:00

The Shanghai Composite Index hit a record high for the year at 3,163.14 points, marking a 20% increase from February. Chinese stocks are on the rise, with Hong Kong’s Hang Seng Index also showing signs of a bull market. The recovery of the second-largest economy is attracting global capital back to Chinese equities.

Northbound funds flowing into the Chinese market hit a new high, reaching 22.449 billion yuan in April. Investors are increasingly interested in Chinese equities, with a net inflow of 87.6 billion yuan recorded this year. Global investment in China is growing as capital shifts from other major markets like the US and Europe.

Financial institutions are increasing their presence in China, with over 90% of emerging market funds adding back positions in Chinese equities. Analysts suggest that traders fear missing out on the opportunities in Chinese stocks. The low valuation of Chinese equities and a strong US dollar are attracting foreign capital to the market.

In efforts to boost market confidence, Chinese cities like Hangzhou and Xi’an are lifting home purchase restrictions to revive the local real estate market. These measures, combined with supportive government policies for the capital market, aim to strengthen investor expectations and promote economic recovery.

The China Securities Regulatory Commission (CSRC) has been implementing measures to stabilize the market, including regulating mutual fund trading fees and increasing oversight on listed companies. These actions are geared towards ensuring healthy development and protecting investor rights in the capital market.



Read more at Global Times: Chinese equities continue rebound amid return of global capital