Chinese assets are witnessing a robust resurgence. Following the U.S. market's opening, leading indices showed mixed results, with notable gains in Chinese stocks. The NASDAQ Golden Dragon China Index increased by 3.66%, and several Chinese companies saw substantial upticks, such as Fangdd Network (12%), UP Fintech Holding (9%), JinkoSolar (7%), and Xpeng (6%). Wall Street's outlook on Chinese assets is becoming increasingly optimistic, with Principal Asset Management expressing growing confidence and increasing investments in Chinese stocks.
Global investment giants are amplifying their purchase of Chinese assets. According to the Hong Kong Stock Exchange, JPMorgan Chase recently increased its shares in Alibaba (BABA, Financial), purchasing approximately 56.36 million shares, raising its stake from 7.80% to 8.09%.
In the U.S. market, the major indices displayed varied movements. By market close, the Dow Jones had dropped by 0.44%, while the Nasdaq and S&P 500 showed slight increases. The leading tech giants, including Apple (1.42%) and NVIDIA (0.8%), experienced gains.
A notable occurrence was the expiration of significant options contracts, marking the largest October options expiration since 2017. Options contracts worth $3 trillion, with substantial links to the S&P 500, met their expiration.
During Asian trading, both A-shares and Hong Kong stocks experienced considerable growth. Shanghai, Shenzhen, and the ChiNext indices all recorded substantial gains, alongside the Hang Seng Index.
Bridgewater's China fund has reported a 31% return in the first three quarters of the year. The hedge fund anticipates a continued moderate increase in Chinese stocks, driven by China's massive stimulus efforts and improved global liquidity due to U.S. Fed rate cuts.
Bank of America's recent survey highlighted that Chinese stocks have become a top choice, ranking third among the most popular transactions for October. Optimism around China's economic strength in the coming year reached its highest since April 2023. Additionally, Goldman Sachs and Principal Asset Management echoed positive sentiments regarding China's market potential.
