久久亚洲国产成人影院-久久亚洲国产的中文-久久亚洲国产高清-久久亚洲国产精品-亚洲图片偷拍自拍-亚洲图色视频

Global EditionASIA 中文雙語(yǔ)Fran?ais
Business
Home / Business / Finance

China's equities more attractive for foreign investors

By SHI JING in Shanghai | China Daily | Updated: 2022-07-04 09:20
Share
Share - WeChat
Investors check stock prices at a securities brokerage in Fuyang, Anhui province. [Photo by Lu Qijan/For China Daily]

China's equities are increasingly attracting international investors due to the prospect of the country's stabilizing economic growth when the capital market is overcast elsewhere.

A glimpse at the northbound capital-the amount that foreign investors buy into the A-share market via the stock connect mechanism linking the Shanghai, Shenzhen and Hong Kong bourses-can reflect A-share appeal amid prospects of recovering economic growth.

From June 1 to 17, the northbound capital reported an aggregate inflow of nearly 58.7 billion yuan ($8.7 billion), which was in sharp contrast to the 45.1 billion yuan of outflow in March.

International investors have poured capital into the A-share market since mid-May, showing the most interest in the industrial, public utility and financial sectors, as calculated by Credit Suisse.

Indeed, A-share industrial companies have replaced consumer staples as the sector where international investors had the biggest exposure over the past few months, said Will Stephens, head of Credit Suisse's quantitative and systematic strategy in the Asia-Pacific.

Not only are foreign investors interested in A-share large-cap blue chips whose development prospects are underappreciated, but they are also eyeing mid to small-cap companies with strong growth potential that have not been fully considered, said Stephens.

According to the Shanghai-based market tracker Wind Info, foreign institutions conducted 575 studies of smaller-cap companies listed on the tech-heavy ChiNext in Shenzhen, Guangdong province since the beginning of April. They have also carried out another 641 studies on companies trading at the STAR Market on the Shanghai bourse. During the same period, only 265 studies have been made on the large-cap companies listed on the A-share main board.

Investors poured nearly $270 million into the $7.2 billion iShares MSCI China Exchange Traded Fund on June 14, the biggest daily inflow since BlackRock rolled out the fund in 2011.

This is the world's largest overseas exchange-traded fund tracking Chinese equities.

KraneShares CSI China Internet ETF, the second-largest China-focused ETF, managed by New York-headquartered Krane Funds Advisors LLC, has also attracted net capital inflows of about $454 million over the past 30 days.

"Chinese equities have rallied amid tightening liquidity globally, indicating the changes in China's macroeconomy. The A-shares are now of increasing appeal to international investors," Max Luo, China director for asset allocation at UBS Wealth Management said during a half-year outlook meeting on June 21.

Luo said, the logic of the A-share market has been changing. This conclusion is supported by the recent stronger rather than weaker performance of the A-share market when the US dollar is becoming stronger.

The A-share market has rallied as production resumed after the latest COVID-19 resurgence was contained and the stimulative economic policies started to take effect. By June 24, the benchmark Shanghai Composite Index had gained nearly 5.3 percent this month, and the Shenzhen Component Index had moved up almost 10 percent.

On the other hand, the mood has been sour in the US stock market on the back of the Federal Reserve's interest hikes to curb soaring inflation. As of June 23, Dow Jones has slid 6.5 percent in June, and the Nasdaq has shed more than 6.3 percent.

The inflow of northbound capital has also helped to buoy A-share market sentiment, said Luo of UBS.A-share companies are now seeing their average price-to-earnings ratios approach a historic low. But their profitability will be improved as China's economic growth further recovers.

"Globally, there are positive signals for the Chinese stock market. Chinese equities are welcomed not only by investors eyeing China assets or those considering global asset allocation," he added.

The manufacturing purchasing manager index, returning to the expansion territory for the first time since February, showed a V-shaped rebound to come in at 50.2 in June. As experts from Black-Rock understand, that is enough to be considered a turning point, showing that the impact of the latest COVID-19 resurgence has been subdued.

To further facilitate China's economic recovery, more supportive monetary and fiscal policies will be introduced, said BlackRock experts. Home purchasing policies may be relaxed in some parts of the country and consumption coupons or subsidies granted in some Chinese cities will boost consumption. Against that backdrop, economic recovery in the second half can be expected, which will be a positive signal for the stock market, they said.

While Stephens from Credit Suisse stressed the relatively low correlation between the A-share market and other global markets, which will help international institutions diversify their investments, experts from Founder Securities depicted the A-share market as a "haven" for foreign investors, especially when overseas markets are lackluster.

With the relaxed policy environment, the A-share indexes will continue to move up amid fluctuations. Technology and growth enterprises will be responsible for most of the structural performance in the following months, said Founder Securities analysts.

Chinese bonds are also looking up. The 5 billion yuan in bonds issued by the People's Bank of China in the Hong Kong Special Administrative Region on June 21 has been well-received by the market. The six-month bill with a coupon rate of 2.3 percent saw its bidding reach 22.8 billion yuan, roughly 4.5 times the issued value.

Investors' pursuit of the bonds has reflected the attractiveness of renminbi assets to overseas investors and the confidence global investors have in the Chinese economy, according to the PBOC.

Data from the Institute of International Finance showed that $2 billion flowed into the Chinese bond market in May, during which time most emerging markets experienced foreign net capital outflow.

Matt Simpson, an analyst with Gain Capital, estimated that up to $10 billion will flow into China's bond market every quarter through the end of 2024 given that the FTSE Russell had included Chinese government bonds in its World Government Bond Index.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 成人a在线观看 | 欧美毛片在线 | 久久黄色一级视频 | 丝袜美腿在线不卡视频播放 | a级欧美片免费观看 | 粉嫩高中生的第一次在线观看 | 美女黄频免费看 | 国产成人一区二区三区免费观看 | 国产真实乱子伦精品 | 亚洲欧美日韩国产制服另类 | 欧美日韩亚洲视频 | 午夜a毛片| 免费看成人 | 悠悠影院欧美日韩国产 | 精品亚洲福利一区二区 | 久久久久久久久毛片精品 | 午夜手机看片 | 五月色婷婷琪琪综合伊人 | 亚洲高清在线看 | 久久精品成人 | aaa免费看| 免费狼人久久香蕉网 | 欧美自拍视频 | 精品久久影院 | 欧美videos娇小 | 亚洲国产精品成人午夜在线观看 | 亚洲国产一区二区a毛片日本 | 亚洲成人黄色网址 | 久久生活片 | 国产综合久久一区二区三区 | 日本特爽特黄特刺激大片 | 亚洲国产成人久久综合野外 | 99视频在线免费 | 欧美日韩午夜视频 | 欧美一区二区在线观看 | 国产精品久久久久久影视 | 国产精品欧美亚洲日本综合 | 欧美精品一区二区三区免费 | 久久se精品一区二区国产 | 一本伊大人香蕉高清在线观看 | 欧美高清在线精品一区二区不卡 |