International financial institutions have been buying up Chinese assets amid growing global interest in the country's stock markets following the announcement of a series of stimulus policies.
According to data released by the Hong Kong Exchanges and Clearing Limited (HKEX) on Friday, J.P. Morgan Chase purchased several Hong Kong stocks on September 27th, increasing its position by about 530 million U.S. dollars in a single day to expand its holdings in Chinese assets.
Firms like Switzerland's UBS and the U.S.-based BlackRock have also recently increased their investment ratings for China's A-shares.
"Statistics show that during the last three trading days of September, funds flowing into Chinese stock exchange-traded funds (ETFs) products reached 2.4 billion U.S. dollars, a figure almost matching the total inflows into similar products over the previous nine months," said Peter Pak, executive director of BOCI Securities Limited, a Hong Kong-based investment firm.
The optimism comes after China's financial authorities announced a broader-than-expected policy package to galvanize the economy's rebound in late September.
A representative from Morgan Stanley said the firm saw a wave of interest in Chinese assets during the week-long National Day holiday that began Oct 1. "During the 'Golden Week' National Day holiday, which is the busiest week in my 20-year career in international financial institutions, I have interacted with over 3,500 overseas international investors through visits and phone calls. Their confidence in the Chinese economy is gradually recovering," said Xing Ziqiang, chief economist with Morgan Stanley China.
Global financial institutions increase investments in Chinese assets
Global financial institutions increase investments in Chinese assets
Global financial institutions increase investments in Chinese assets
