Helen Jewell, CIO of Fundamental Equity for EMEA at BlackRock, believes that the Chinese stock market has bottomed out and that stock valuations are very low.
Just half an hour after the A-share market opened, at 10:00, the turnover exceeded 930 billion yuan. At 10:05, the turnover exceeded 1 trillion yuan, an increase of more than 400 billion yuan from the previous trading day, setting a new record for the fastest trillion yuan turnover in history. At the same time, many investors reported that they were temporarily unable to transfer funds between banks and securities companies in the early trading session, and some netizens said that they could not log in to the APP of their brokerage firms.
As of press time, the Shanghai Composite Index rose 4.20%, the Shenzhen Component Index rose 6.67%, and the ChiNext Index rose 8.93%. The market turnover was 1.3504 trillion yuan, and more than 5,200 stocks rose.
Three days ago, I saw news that foreign capital was buying all Chinese assets! I thought it was just hype!
Crazy! This is probably the most direct feeling of the Citi Asia team in recent days.
According to foreign media reports, as the People's Bank of China, the China Securities Regulatory Commission, the State Financial Regulatory Commission and other departments have recently joined forces to send a "gift package" to the Chinese capital market, a large number of customers have also flocked to Citi's stock sales and trading team in Asia. Citi said in a research report that "the past three days have been the busiest period for the team, with the number of customers flowing into Hong Kong stocks and A shares hitting a record high."
Hedge funds also changed direction earlier this week and piled into Chinese stocks, posting their largest single-day net purchases since March 2021 and the second-largest single-day net purchases in the past decade on September 27, according to data from Goldman Sachs' prime brokerage division. Prior to that, they had less than 7% of their capital allocated to Chinese stocks, about the lowest level in five years.
Vincent Mortier, chief investment officer of Amundi Asset Management Group, also pointed out in an interview with the reporter of Daily Economic News, "As far as we know, global hedge funds have limited exposure to Chinese assets, and cautious hedge funds are likely to have covered their short positions. Long-term/short-term stock hedge funds that focus on Asia and China had average exposure to Chinese stocks before the announcement of the stimulus policy. They prefer offshore indexes and consumer, technology and financial stocks in terms of industries. This week, they have significantly increased their investment in Chinese stocks."
Some investment tycoons have already quickly moved to buy Chinese assets. On September 26, local time, David Tepper, a billionaire investor and founder of Appaloosa Management, said in an interview with CNBC's "Squawk Box" TV program that he is buying all China-related assets, including futures, stocks and ETFs.
He explained that even after the surge, Chinese stocks were still cheaply valued, and he also lifted the limits he had set on Chinese stocks. "I probably said a long time ago that I wouldn't go above 10 or 15 percent," Tepper said. "That's probably no longer the case."
Helen Jewell, BlackRock's CIO for fundamental equities in Europe, the Middle East and Africa, believes that the Chinese stock market has bottomed out and stock valuations are very low. Currently, more people are indeed adding Chinese stocks to their portfolios.
I am not talented, but I have worked in a large institution. This kind of crazy news actually makes me feel a little uneasy. Although the A-share market has been cut to pieces, from a rational point of view, the government's stimulus to the economy has the following four requirements:
First, favorable policies. A series of financial policies recently introduced, such as reserve requirement ratio cuts, interest rate cuts, and interest rate cuts for existing mortgage loans, have boosted market confidence.
Second, liquidity is abundant. The liquidity released through measures such as lowering the reserve requirement ratio has increased the capital supply in the market;
Third, risk appetite has increased, and the positive policy adjustments have reduced market uncertainty, allowing more funds to flow into the stock market;
Fourth, valuation repair. After the previous adjustments, the configuration value of some high-quality growth companies has been highlighted.
Or maybe I am not good at academics. Everyone should remember this kind of super positive news clearly, especially the first test of 3,000 points. During the Chinese New Year, the stock price rebounded and then was forced to be suppressed. Then all kinds of news were flying around, singing the bearish Chinese economy. Behind this, there must be short sellers in a certain country selling. When the government can't bear it anymore, it will force a short position and then buy the bottom. If you don't do this, the impact will not be good. To put it bluntly, it's a bit like forcing good women to do prostitution.
Maybe it's a national concern theory. I'm just worried that if foreign capital buys at a large scale, it will reversely control many large enterprises, especially state-owned enterprises with Chinese characters in their names. In the long run, it is actually very disadvantageous. I hope the government can withstand this wave of impact and do two things well: on the one hand, resist the large-scale invasion of foreign capital, and on the other hand, it really boosts market confidence and stimulates news. This is basically a battle without gunpowder smoke with the strength of the whole country!
Although the A-share market is doing very well now, since I have entered the cryptocurrency market, I still have faith that I will definitely break through the high point of 730,000 and reach more than 100,000! Come on, my country, and my cryptocurrency friends, stay steady! $BTC 【Personal profile and advantages】
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