The longest net buying record since August! Global funds are returning to the Chinese stock market one after another.
After a record-breaking sell-off, foreign investors are now reinvesting in Chinese stocks, indicating that the Chinese stock market may be bottoming out.
According to the Zhongtong Finance APP, after a record-breaking sell-off, foreign investors are reinvesting in Chinese stocks, indicating that the Chinese stock market may be forming a bottom.
Data shows that overseas funds have flowed into the market with a total of 15 billion yuan (2.1 billion US dollars) in the past three trading days, marking the longest period of net buying since early August. As of Monday's close, the Shanghai and Shenzhen 300 Index has risen by 4.6% from its low point last month.
Although these figures may seem modest compared to the 172 billion yuan outflow in the three months leading up to October, the continuation of the net buying trend may strengthen the confidence of investors who anticipate a turning point in the market.
Timothy Moe, Chief Equity Strategist for Goldman Sachs Asia Pacific, stated last month that the outlook for Chinese stocks is optimistic and proactive. Goldman Sachs recommends overweighting Chinese stocks to bet on a possible rebound by the end of this year. Nomura, in its latest report, expressed confidence in the investment value of the Chinese market, citing signs of economic improvement, supportive policies, and clear signals from the government to revitalize the economy, financial markets, and confidence.