| Global investors have snapped up a record $US21 billion worth of Chinese equities this year, as robust economic data spurs traders to make larger bets that the reopening rally has further to run.
Analysts said the recent surge in foreign demand for China stocks was driven by positive economic data published after the lunar new year holiday, which had helped reassure some investors who had remained skittish about the country’s growth outlook even after it began dropping“It’s spectacular compared to any other year since the launch of the connect,” said Frank Benzimra, head of Asia equity strategy at Société Générale.
“Economic data and developments in the past week have underscored our positive outlook on China,” said Mark Haefele, chief investment officer for global wealth management at UBS, in a note this week. “When everybody said they’d like to have a portfolio without China, that was the bottom,” said Alison Shimada at Allspring Global Investments. She said Allspring was now “a little overweight” on Chinese equities after increasing its allocation on October 31 – a view that was “not popular at the time”.