Shenzhen’s ChiNext jumped nearly 3% to its highest level since June 2015. Shanghai’s tech-focused
market gained 2.8%.
Foreign investors have been buying mainland Chinese stocks via Stock Connect for three straight days despite recent volatility, as China’s low correlations with the US Federal Reserve‘s policy offer diversification benefits to global portfolio managers, Mizuho Bank said in a note.
BlackRock, which this year started treating China as a standalone asset class separate from emerging and developed markets, said in a weekly note that following China’s cut in banks’ required reserves, “we see potential for more, broad-based loosening in the near term, including in fiscal and other policies”.
But Swiss private bank Union Bancaire Privée (UBP) expressed caution, reducing its Chinese equity exposure from overweight to neutral. “Chinese equities were hurt by the first-in, first-out effect and in the short term, regulatory risks remain significant.”
Business News Governmental News Finance News
Need Your Help Today. Your $1 can change life.