China stock market: overseas money managers turn more upbeat about Chinese stocks after state support measures, HSBC’s brokerage unit says

Name: China GDP: Beijing’s long to-do list to boost its economy in 2024
Uploaded: 2024-04-03T05:39:42.000Z
Duration: 2 min 31 s
Description: China GDP: Beijing’s long to-do list to boost its economy in 2024

Money managers in Asia are the most active in seeking opportunities in the Chinese market, while European investors have also become less bearish, report says

‘It’s safe to say that views on China have converged somewhat from both ends of the spectrum,’ says Steven Sun, head of research at HSBC Qianhai Securities

2-MIN READ2-MIN

The findings may add more impetus to China’s US$9.2 trillion stock market, whose benchmark gauge has rebounded more than 10 per cent from a February low. Photo: Reuters

Zhang Shidongin Shanghai

Published: 1:39pm, 3 Apr 2024

Global fund managers have become more positive about Chinese stocks after the securities regulator took a flurry of forceful measures to halt a three-year decline, according to a joint-venture brokerage of HSBC Holdings.

That conclusion is based on meetings with more than 60 global institutional investors over the past three weeks, in which there was a significant improvement in sentiment compared with the last two marketing trips in July last year and November 2022, said Steven Sun, head of research at HSBC Qianhai Securities in Shenzhen, in a research note on Tuesday.

Money managers in Asia and emerging markets are the most active in seeking opportunities in the Chinese stock market as valuations in the Japanese and Indian markets become increasingly stretched, while European investors have also become less bearish, according to the report. US- and UK-based funds still remain sceptical about the outlook, it said.

“It’s safe to say that views on China have converged somewhat from both ends of the spectrum,” Sun said in the report. “They are rare, but there are still structural bulls out there on China.”

The findings may add more impetus to China’s US$9.2 trillion stock market, whose benchmark gauge has rebounded more than 10 per cent from a February low after state intervention ranging from the direct buying of exchange-traded funds (ETFs) to calls for listed companies to take more heed of shareholder values.

02:31

China GDP: Beijing’s long to-do list to boost its economy in 2024

The report was published on the same day Ray Dalio, the billionaire founder of the world’s largest hedge fund, Bridgewater Associates, said it was time to buy Chinese stocks as Beijing moves to bolster growth.