Foreign investors boost investments in China amid growing bullish sentiments

International investors are ramping up their investments in China's equity market, fueled by a hopeful outlook on the recent series of economic policies designed to stimulate growth and recovery, according to reports from international media.

Foreign investors boost investments in China amid growing bullish sentiments
International investors are ramping up their investments in China's equity market, fueled by optimism surrounding the latest economic policies designed to stimulate growth and recovery, according to reports from international media.

Global hedge funds are investing in Chinese stocks at record levels, as highlighted by Bloomberg, which named U.S.-based Mount Lucas Management, Singapore's GAO Capital, and South Korea's Timefolio Asset Management as major players adopting bullish positions in the Chinese markets.

During the recent seven-day National Day holiday when China's stock markets were closed, Chinese-related exchange-traded funds in Tokyo reached all-time highs last Friday, signaling increasing confidence among Japanese investors regarding China's stimulus initiatives, as reported by Nikkei Asia.

Following the September meeting of the Political Bureau of the Communist Party of China Central Committee, which introduced additional economic measures, Goldman Sachs released several optimistic reports on the Chinese stock market. The firm has upgraded its recommendation for Chinese stocks to "overweight," as noted by Bloomberg.

"A massive move in a short amount of time for the world's second largest economy and that's going to have ripple effects lifting all emerging markets," remarked Will McGough, director of Investments at Prime Capital Financial, in comments to Forbes about China's stimulus efforts.

According to an explainer from the Wall Street Journal, these measures have already positively impacted Chinese indexes and currency, European luxury brands, global mining companies, and commodity prices. However, it cautioned that China's forthcoming actions in the months ahead will be pivotal in shaping the long-term trajectory of its economy.

At a press conference on Tuesday, Zheng Shanjie, head of the National Development and Reform Commission, unveiled a series of actions intended to further invigorate the economy.

Among the key announcements was the decision to release investment projects valued at 200 billion yuan that are scheduled for next year ahead of time, allowing local governments to accelerate preliminary work and construction.

The think tank China Finance 40 Forum suggested that the government's strategy to front-load the 200 billion yuan could significantly enhance economic growth in the fourth quarter and assist China in meeting its annual GDP growth target of five percent.

Mark B Thomas for TROIB News