Overseas index funds tracking Chinese A-shares and Hong Kong-listed H-shares saw significant net inflows last week, signaling renewed global investor confidence in Chinese equities amid improving macroeconomic conditions and technological advancements.
Emerging market ETFs listed in the U.S. attracted over 800 million U.S. dollars last week, with 571 million directed toward funds focused on Chinese A-shares and H-shares, marking the highest among emerging markets.
"Global investors are gravitating toward Chinese assets due to the government's intensified macro-policy support, including a higher budget deficit ratio reflecting its resolve to stabilize growth. The measures to boost domestic demand and consumption reflect a strong emphasis on people's livelihoods. The latest retail sales data, showing both year-on-year and month-on-month growth, prove these policies are taking effect. These factors will continue to bolster international confidence in China's market and attract sustained capital inflows," said Jiang Xianwei, senior global strategist at J.P. Morgan Asset Management.
Experts also highlighted China's technological breakthroughs as a key driver.
"China's continuous advancements in AI and robotics have showcased the world the innovation capabilities of its companies. As these technologies expand into broader applications, they will comprehensively enhance China's competitiveness, spurring demand for hardware and software while fostering new business models. This will further elevate the global appeal of Chinese assets," said Wang Kai, Chief Strategist at Guosen Securities.
Global funds flood into China's A-Shares, H-Shares ETFs as investor confidence rebounds
China is willing to strengthen communication, enhance trust, eliminate interference, and deepen cooperation with Canada to bring bilateral relations forward on a steady and sound track in solid strides under the new circumstances, said Chinese Foreign Minister Wang Yi on Thursday.
Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, met with Canadian Foreign Minister Anita Anand in Beijing on the day.
Referring to Canadian Prime Minister Mark Carney's visit to China, the first by a Canadian prime minister in eight years, Wang said the trip marks a milestone in bilateral ties and signals a turning point in the relationship.
The leaders of the two countries will hold meetings and talks, which are expected to open up new prospects for bilateral relations, said Wang.
The world today is undergoing profound and complex changes, and the impact of China-Canada relations transcends the bilateral scope, Wang noted.
Wang said that China and Canada have different social systems, stemming from different historical and cultural heritage, and based on the choices of their respective people.
He urged both sides to view each other in a rational and amicable manner with an inclusive mindset, handle issues on the basis of mutual respect, focus on the agenda of cooperation, and send positive messages so as to foster optimism, inject greater confidence into the development of bilateral relations, and jointly build a new type of strategic partnership between China and Canada.
Anand said the new Canadian government attaches great importance to relations with China. She also added that Prime Minister Carney looks forward to engaging in in-depth exchanges with Chinese leaders during the visit to set the course for the development of bilateral relations, resume dialogue in various fields, pursue more mutually beneficial outcomes, enhance coordination and cooperation in multilateral affairs, and further advance the strategic partnership between the two countries.
China ready to work for steady, sound ties with Canada: FM
