Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Politics

China’s market rebound attracts global investors, pulls capital away from Asian rivals

admin by admin
October 3, 2024
in Politics
0
China’s market rebound attracts global investors, pulls capital away from Asian rivals
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

A significant rally in Chinese stocks is prompting a shift in global portfolios, as investors seek to capitalize on new opportunities, Bloomberg has reported.

Following Beijing’s aggressive economic stimulus measures, the flow of funds, which previously favored stocks from Japan and Southeast Asia, is reversing direction, according to market analysts.

Shares in markets like South Korea, Indonesia, Malaysia, and Thailand have seen net outflows, while BNP Paribas reports that over $20 billion has been pulled from Japanese equities in the first few weeks of September.

Strong gains in China, challenges for other Asian markets

The rotation of capital may signal the end of a robust run for non-Chinese Asian markets.

Earlier this year, Taiwan benefited from the booming chipmaking sector, while India saw its markets surge on the back of accelerating economic growth.

Southeast Asia also enjoyed a boost due to lower US interest rates, helping regional markets.

However, China’s resurgence, driven by favourable government policies, is now drawing investor attention away from these markets.

Eric Yee, senior portfolio manager at Atlantis Investment Management, confirmed the trend in the report,

“We are trimming our long positions across Asia to fund China purchases. Everyone is doing so. It’s a good policy-driven recovery from rock bottom. You wouldn’t want to miss out on such an opportunity.”

Chinese stocks see a 30% rise, attractive valuations remain

The MSCI China Index has surged more than 30% from its recent low after Chinese authorities rolled out a series of stimulus measures aimed at reviving economic growth.

Trading volumes in both China and Hong Kong hit record highs earlier this week.

Despite the rally, valuations remain attractive, with the MSCI China gauge trading at 10.8 times forward earnings, still below its five-year average of 11.7 times.

This leaves room for further gains, as global mutual funds currently have only a 5% allocation in Chinese equities—an all-time low over the past decade, according to EPFR data from August.

The possibility of more funds flowing into Chinese markets as investors reallocate resources is becoming more apparent.

Early stages of reallocation

While the shift toward Chinese equities is in its initial stages, BNP Paribas strategists, including Jason Lui, noted that investors are beginning to reduce their exposure to Japanese stocks and reallocate funds back into China.

Although this trend has yet to lead to significant outflows from Indian and other emerging markets, the potential for more substantial changes remains.

Maybank analyst Jeffrosenberg Chenlim sees the current fund flow as a “temporary event.”

However, others like Mohit Mirpuri, a fund manager at SGMC Capital, argue that China could be the top performer by the end of 2024.

“The current momentum is hard to ignore,” Mirpuri said, emphasizing the potential for China’s continued growth.

The post China’s market rebound attracts global investors, pulls capital away from Asian rivals appeared first on Invezz

Previous Post

BoE’s Bailey hints at more aggressive rate cuts amid inflation and geopolitical concerns

Next Post

Deutsche Bank upgrades RTX: should you hold for the $129 target?

admin

admin

Next Post
Deutsche Bank upgrades RTX: should you hold for the $129 target?

Deutsche Bank upgrades RTX: should you hold for the $129 target?

Trending News

Bitcoin plummets 9% amidst market jitters and Fed’s hawkish tone

Bitcoin plummets 9% amidst market jitters and Fed’s hawkish tone

December 20, 2024
Why Tesla’s earnings could increase pressure to justify its spot in the Magnificent Seven

Why Tesla’s earnings could increase pressure to justify its spot in the Magnificent Seven

October 23, 2024
The Trump effect: Bitcoin’s wild ride takes a breather

The Trump effect: Bitcoin’s wild ride takes a breather

November 15, 2024
Subscribe to Insightful Word


    Recent News

    Goldman Sachs upgrades Yum! Brands: here’s why

    Goldman Sachs upgrades Yum! Brands: here’s why

    June 4, 2025
    SCHD ETF forecast for June and top catalysts to watch

    SCHD ETF forecast for June and top catalysts to watch

    June 4, 2025
    Needham downgrades Apple on weak iPhone cycle, AI lag and overvaluation concerns; share falls

    Needham downgrades Apple on weak iPhone cycle, AI lag and overvaluation concerns; share falls

    June 4, 2025
    From ‘burning platform’ to 600% surge: inside Rolls-Royce CEO’s ‘Four Pillar’ miracle turnaround

    From ‘burning platform’ to 600% surge: inside Rolls-Royce CEO’s ‘Four Pillar’ miracle turnaround

    June 4, 2025

    Recent News

    Goldman Sachs upgrades Yum! Brands: here’s why

    Goldman Sachs upgrades Yum! Brands: here’s why

    June 4, 2025
    SCHD ETF forecast for June and top catalysts to watch

    SCHD ETF forecast for June and top catalysts to watch

    June 4, 2025

    Latest News

    • Goldman Sachs upgrades Yum! Brands: here’s why
    • SCHD ETF forecast for June and top catalysts to watch
    • Needham downgrades Apple on weak iPhone cycle, AI lag and overvaluation concerns; share falls

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.