Foreign businesses in China are increasing their investments and asset acquisitions in the country following the recent introduction of a series of expansionary fiscal, monetary and financial policies by the Chinese government.
Fang Dongming, head of China Global Markets at UBS, noted that recent proactive economic policy initiatives present an opportunity for foreign companies to increase their investments in China.
"Now there is an overall policy orientation of focusing on the economy. Focusing on China and increasing investment here, this is a trend. It is very important for us at UBS and our clients to seize this opportunity," he said.
Since late September, when China's central bank and the China Securities Regulatory Commission introduced a series of policies aimed at revitalizing the economy, investor activity has surged, with a 29 day streak of China's A-share market hitting more than one trillion yuan (about 138 billion in U.S. dollars) in daily volumes. In response to the longest such run since 2015, many foreign institutions have published research reports expressing optimism about Chinese markets.
"First we need to look at the growth potential, and second is the valuation and the relative demand for global portfolio diversification. Overseas investors have the need to invest in the Chinese stock markets," Fang said.
Fang's view is shared by Sun Yu, general manager of the securities research department at HSBC Qianhai Securities Limited. Sun and his team have received a surge of requests from overseas investors to survey sub-sectors related to new quality productive forces and provide professional investment advice and market analysis.
"We are conducting 20 to 30 company surveys per week. Compared to September, the frequency of our research has seen a significant increase, reflecting a notable improvement in investor sentiment, especially among global investors," Sun said.
From September 24 to November 8, the sample foreign funds tracked by Sun and his team saw a net inflow of over 10 billion U.S. dollars into the Chinese stock market.
"For Asian funds, their allocation to the Chinese market has basically returned to the highest level in the past five years," Sun said.
According to several foreign investors, as China's economic fundamentals continue to improve, long-term overseas capital waiting on the sidelines is expected to accelerate its flow into the Chinese market.
Foreign institutions increase investment as China's policies drive market optimism
Cyber Monday e-commerce sales in the United States grew 6 percent this year compared with the same period last year, according to Adobe Analytics. Cyber Monday, which falls on the first Monday after Thanksgiving, has become the biggest online shopping day in the U.S. This year's Cyber Monday, taking place on Dec 2, is expected to generate retail sales between 13.2 billion to 13.5 billion U.S. dollars, potentially setting a new record for single-day online sales in the country, according to Adobe Analytics. The sales increase are partly driven by inflation and concerns about potential tariffs from the incoming Trump administration, according to analysts. "Now, with the threat of tariffs looming on the horizon, it might be a great time for people to buy what they need now, because of the unknown, which might cause prices to spike," said Norman Fong, co-founder of BuyVia, a price comparison platform. While traditional Cyber Monday advertisements dominate the websites of major retailers such as Amazon, Walmart and Target, manufacturers are increasingly turning to social media channels to connect with consumers. "Social commerce, especially with the advent of TikTok shops that has been launched in the past year in the U.S., has really ramped up the focus on social in terms of paid, but also in terms of organic and creating conversations on social, which lend to more authenticity," said Lori Fields, Founder and Director of the ecommerce department of Jay Street Partners, a marketing agency. According to Fields, the social media platform Reddit has excelled in allowing consumers to discover their interest in certain products. "There are so many communities in Reddit that are discussing the merits of different products, whether it be from cycling to bedding to hot sauce. We're seeing so many different micro communities," said Fields. For over a decade, the BuyVia website and mobile app have been notifying users about great deals, and this year, they are implementing new strategies. These include video advertisements on TikTok, Instagram, and YouTube featuring an AI-generated host. They are also collaborating with social media influencers to enhance their outreach. "We've tried to work with some influencers, and actually a lot of them are extremely pricey and some of the other ones are really hard to work with. So, we looked at what other folks were doing out there, learned some best practices, and decided to just give it a try. Some of it is probably embarrassing, but we're making incremental gains," said Fong.
US Cyber Monday e-commerce sales up 6 pct: data
