On Wednesday (November 13), global investors' interest in the Chinese market continued to rise. "Optimism about China" has become one of the hottest trades among overseas funds, ranking among the top three on the global popular list. Data shows that more and more foreign institutions are voting with actual funds, consistently increasing their investment in the Chinese stock market. According to data from Morningstar, between September 24 and November 8 this year, foreign sample funds net inflow into the Chinese stock market exceeded $10 billion, demonstrating investors' strong confidence in the long-term growth potential of China's economy.
In October, Chinese Exchange Traded Funds (ETFs) listed abroad also attracted a large inflow of funds, with a net inflow of 111.5 billion yuan for the month, bringing the total size of ETFs to 818 billion yuan, marking a 9% monthly increase. According to the Global ETF Fund Flow Report released by E Fund Hong Kong for October 2024, global funds (including domestic and international funds) flowed into the Chinese stock market to the tune of $24.1 billion (approximately 174.4 billion yuan) that month, setting a monthly high.
Meanwhile, certain large-cap ETFs performed particularly strongly. As of November 7, the asset scale of the iShares China Large-Cap ETF had reached $10.134 billion, more than doubling from $4.861 billion on September 30, an increase of $5.273 billion. This rapid growth reflects investors' optimistic sentiments towards the Chinese market, especially given the current global market uncertainties, as the stability and growth potential of the Chinese market are highly favored.
At a conference in Hong Kong, Morgan Asset Management's Global Multi-Asset Strategist, Sheng Nan, stated that the company had moderately increased its holdings in Chinese stocks, anticipating a potential return of 7.8% in 2024 in USD terms. Additionally, Bank of America's latest global fund manager monthly survey shows that "optimism towards China" ranked among the top three global hottest trades in October, accounting for 14%. Moreover, 48% of global fund managers believe that China's economy is expected to continue strengthening in the next 12 months, further propelling the market upward.
This series of data indicates that despite the challenging global economic environment, foreign investment interest and confidence in the Chinese market are steadily increasing. The resilience of China's economy, alongside sustained growth expectations and policy support for technology, consumption, and emerging industries, are key factors attracting foreign investment.
