Policy "combination punch" brings about revaluation of Chinese assets, sustainable inflow of foreign capital

Since a series of better-than-expected policies were introduced on September 24th, A-shares have experienced a short-term rally, with foreign capital urgently increasing their holdings in A-shares. According to a research report from Zhongjin Company, data from the Emerging Market Investment Fund Research Company shows an expansion in active foreign capital inflows. From October 3rd to October 9th, active foreign capital inflows into A-shares amounted to $200 million, an increase of $10 million compared to the previous period, while passive fund inflows reached $4.1 billion, a growth of $1.46 billion. At the same time, Hong Kong stocks and ADR overseas funds saw an overall inflow of $4.44 billion, an increase of $1.45 billion compared to the previous period. Wang Xinjie, Chief Investment Strategist of the China Wealth Solutions Department at Standard Chartered, expressed confidence in China's medium to long-term economic growth in an interview with reporters, stating that the inflow of foreign capital is sustainable. Looking at a series of policies introduced since the end of September, the government has proposed solutions to a range of issues, and under this policy mix, the process of reversing the economic fundamentals is accelerating