Foreign investors bullish on Chinese assets

Foreign investors have shown confidence in the Chinese markets, with JPMorgan Chase increasing holdings in the local equity market despite global uncertainty.

As China maintains its steady growth momentum, more foreign institutional investors have quickened the pace of their investments in the Chinese market.

JPMorgan Chase spent more than HK$4.1 billion on Chinese assets on September 27, reported jrj.com based on guandian.cn's citaccording tof data released from the Hong Kong stock exchange (HKEX).

Purchases included China Pacific Insurance, BYD, Tsingtao Brewery and Hong Kong Exchanges and Clearing Limited (HKXCY). In addition, JPMorgan has increased its holdings of shares in Ping An and China Merchants Bank.

Given strong investor appetite, the Hong Kong market has maintained a strong performance over the past week, recording a rebound of over 20 percent.

Several multinational investors, including ANZ Group Holdings, Bayer and BSH Hausgerate Group, recently voiced their confidence in China’s economy after the Political Bureau of the Communist Party of China Central Committee's meeting on economic work highlighted efforts to boost the capital market and the central bank People's Bank of China (PBOC) unveiled a raft of major policy adjustments last week.

In early September, M&G Investments, one of Europe's leading asset managers headquartered in London, announced the launch of the M&G China Fund, aiming to provide investors with access to what it called "one of the world's most compelling markets for long-term stock picking."

So far this year, multiple international institutions, including the World Bank and the International Monetary Fund (IMF), have raised their forecast for China's economic growth in 2024.

The World Bank has raised its growth forecast to 4.8 percent, 0.3 percentage point higher than its previous forecast, while the IMF revised China's growth outlook upwards to 5 percent, increasing by 0.4 percentage point from its previous forecast.

As the number of foreign investors continued to grow, their holdings of Chinese bonds are also increasing.

Foreign investors' holdings of Chinese bonds in the interbank market increased to 4.5 trillion yuan ($641.9 billion) at the end of July, reaching a record high, according to data from the PBOC.

(With input from Xinhua)