Sentiment has clearly turned for the better toward Chinese equities with overseas investors purchasing a record amount of onshore shares Friday.
Traders added 22.4 billion yuan (USD3.1 billion) of mainland stocks on a net basis using the links with Hong Kong, topping the previous high of 21.7 billion yuan in mid-2021. Chinese shares are set to see a third straight month of inflows in April, suggesting the exodus from the market has likely passed.
The flows helped drive gains in the benchmark CSI 300 Index, which joined a rally in Hong Kong peers to advance 1.5% for the day. Turnover also topped the 1 trillion yuan mark. This bullish signs ratify a growing view that some global funds are unwinding crowded trades in US tech and elsewhere to dip back into China’s battered stocks. – Bloomberg
