Valuation advantages combined with policy support, enhancing the attractiveness of Chinese assets

Currently, the attractiveness of Chinese asset allocation is attracting global funds' attention. With the market's expectation of a rate cut by the Federal Reserve in September continuing to rise, A-shares with obvious relative valuation advantages are expected to rise with the marginal improvement in external liquidity conditions and the continuous reinforcement of domestic growth-stabilizing policies. Hong Kong stocks also have significant rebound opportunities. Wind data shows that on July 31st, the A-share market saw a substantial increase in trading volume, with a net inflow of nearly 20 billion yuan from northbound funds in a single day, reaching a new high for the period. Industry insiders believe that the combination of external positive factors and positive changes in domestic fundamentals will help attract global funds back to A-shares, further solidifying the appeal of Chinese assets. (China Securities Journal)