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People walk on a pedestrian bridge displaying the Shanghai and Shenzhen stock indices on January 2, 2024 in Shanghai, China.
Hugo Hu | Getty Images
Indeed, these funds mainly invest in Chinese stocks traded on the Hong Kong Stock Exchange or in publicly traded American companies whose headquarters are or are incorporated in China. Markets in mainland China, including the Shanghai and Shenzhen stock exchanges, will remain closed until October 8.
“I’m bullish on Chinese stocks; this time it’s different,” Scott Rubner, a tactical specialist at Goldman Sachs, said in a note. “I’ve never seen so much daily demand for Chinese stocks: I don’t even think we’re back to benchmark weightings yet.”
Chinese stocks rallied last week after Beijing unleashed a flood of stimulus measures to address a deep economic recession, including rate cuts and a reduction in the amount of liquidity banks must have on hand.
The government pledged to provide strong stimulus measures, sparking new optimism about Chinese stocks which have been battered amid a sluggish economic and regulatory crackdown in recent years . David Tepper, founder of hedge fund Appaloosa Management, told CNBC last week that he buys “everything” related to China thanks to government support.
JD.com jumped 5% on Wednesday, up for a fifth consecutive day. Another e-commerce name, PDD, jumped 4.8% after an 8% rally the previous day.