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
The Iranian government is focusing on public concerns and maintaining stable supplies of essential goods amid recent protests, Iranian President Masoud Pezeshkian said in a televised interview on Sunday.
In the city of Karaj, northwest of the capital Tehran, daily life has largely continued as normal. A video filmed by a local resident on Sunday shows food stores open and grocery shelves fully stocked.
"This is the block near my home, and there are some food stores here. Daily life continues here. Last night we did not see many protests in Karaj. Right now the city is very safe. This is a grocery store close to my home. All the food is available; nothing is in shortage. Here are noodles and different types of beans. Here are dairy products, cheese, and yogurt. I also checked other grocery stores and didn't see any shortages. Everything is available," said local resident Ali Reza.
Iranian officials have described recent disturbances as acts orchestrated by the "enemy," including some carried out by well-trained and armed "terrorists." The incidents have caused casualties among security personnel and civilians, as well as property damage.
The Secretary of Iran's Supreme National Security Council Ali Larijani has directed authorities to severely punish the "terrorists."
Meanwhile, Iran's police chief Ahmad-Reza Radan said on Sunday that the police had raised alert levels and arrested several leaders of the troublemakers during the operations on Saturday.
President Pezeshkian noted in the interview that the normal demands of the Iranian people are reasonable and justified, but they must realize that triggering riots and carrying out terrorist acts are the enemy's attempts to undermine the country. He urged the public to remain vigilant.
Also on Sunday, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that Tehran would regard U.S. and Israeli bases and facilities in the Middle East as "legitimate targets" if Washington takes military action against Iran. His remarks followed media reports saying U.S. President Donald Trump is "seriously considering authorizing a strike" against Iran.
Iranian state media reported that at least 109 members of Iran's security forces have been killed in clashes since the protests began 14 days ago. Meanwhile, human rights groups based outside the country said the number of protesters killed has exceeded 200, though the figure could not be independently verified.
The protests initially erupted over a sharp depreciation of the rial and sweeping subsidy reforms. Iranian authorities have blamed the unrest on foreign-linked agents and sanctions imposed by the United States.
Iranian president says government focusing on ensuring supplies amid protests
