Stock market Photo:VCG
International financial institutions have increased their expectations for Chinese stocks, with the Nasdaq Goldlong China Index rising 14.86% in the 10 business days that ended Friday, the highest rate of increase in two weeks since January 2023.
With international investors’ growing interest in RMB-denominated assets, the Chinese market is a good place to diversify investment portfolios and explore value, according to international financial giants such as Morgan Stanley and Bridgewater Associates. It is said that
The index rose 6.01% on Thursday, the data showed, the highest single-day increase since late July last year. Analysts said there are emerging opportunities for medium- to long-term funds to flow into renminbi assets, especially China’s stock market.
Considering the high-quality development of the A-share market and the development of targeted policies to promote the sustained recovery of the Chinese economy, now is a good time to invest in the Chinese stock market and Chinese companies. said Yang Delong, Shenzhen’s chief economist. , the First Seafront Fund told the Global Times on Sunday.
He said that the valuations of the A-share market and the Hong Kong stock market are near record lows, and confidence and patience are needed to achieve long-term gains.
The meeting of the Politburo of the Communist Party of China Central Committee held on April 30th emphasized efforts to effectively implement established macro policies and properly implement active fiscal policy and prudent monetary policy. He vowed to push forward from the front.
These policies will further promote economic recovery and promote the development of China’s stock market, Yang said.
Since early 2024, global asset managers have expanded their investment portfolios in China due to growing confidence in Chinese assets.
In March, Bloomberg reported that “global money is returning to Chinese stocks,” citing a Morgan Stanley analyst.
Ray Dalio, founder of Bridgewater Associates, posted on social media platform LinkedIn on April 1st:[T]There are no bad markets here. There is only bad decision making. I think the Chinese market is suitable for my type of decision making. ”
Stocks in mainland China and the Hong Kong Special Administrative Region (HKSAR) recently made a surprising rebound after the country’s cabinet, the State Council, promised measures to maintain stock market stability.
The benchmark Shanghai Composite Index fell to its lowest level in years, before recovering to the 3,100 level at the end of April.
Citing data, China Securities News reported that the net inflow of northbound capital (foreign funds flowing into China’s A-share market through the Hong Kong Special Administrative Region) in the first quarter of this year was 68.22 billion yuan ( 9.65 billion), exceeding the total in 2023. From information provider Choice.
In April, the State Council released guidelines on strengthening regulations, avoiding risks, and promoting high-quality development of capital markets. This is the third guideline document on capital markets issued by the State Council in the last 20 years.
The new guidelines strengthen supervision and effectively prevent and reduce risks, making arrangements in areas such as listing, trading, and the entry of long-term capital. Dong Shaopeng, a senior researcher at Chongyang Financial Research Institute of Renmin University of China, told the Global Times that this is expected to improve the fairness and efficiency of the A-share market and stimulate market vitality.
Dong said the challenges faced by the A-share market are temporary and a bull market will come eventually, noting that targeted policies and sound macroeconomic management will provide new impetus to the capital market. .
He said more efforts were needed to strengthen regulations involving listed companies, agencies, local governments and major shareholders of stock exchanges. Furthermore, diverse delisting channels are necessary to protect the rights and interests of public investors throughout the entire delisting process.
