Money from around the world is flowing into the Chinese market, a testament to its gravitational pull on investors, a recent Bloomberg report said.
According to data from the Hong Kong Stock Exchange, foreign investors have increased their holdings of shares in Shanghai and Shenzhen via trading links every month since November, adding that buying in August more than doubled compared to July, "and it is a similar picture in China's bond market," Bloomberg wrote on September 4.
Noting that China's push for "shared prosperity" could help the country maintain long-term growth, the report said some market pundits have also expressed their optimism on the future of the Chinese economy.
"We feel that the recent regulations are targeted to streamline the future structure of economic growth toward higher quality growth and more balanced growth," Chris Liu, a senior portfolio manager for China Equities at Invesco Hong Kong Ltd., was quoted as saying in the report.
Pointing out that the yuan has advanced about 1 percent against the U.S. dollar in 2021 and about 6 percent over the past three years, Bloomberg said the strength of China's currency is also playing a role in the attractiveness of the country's market.
Pascal Blanc, chief investment officer of Amundi SA, whose firm oversees 2.1 trillion U.S. dollars globally, also said in the report that China's recent measures to regulate the market have "opened up interesting opportunities."
Investors can take advantage of the opportunities "to increase their allocation to Chinese equities in the global portfolio," Pascal and his colleagues said in a note this month.