Close

Recent stock market trend shows that top Wall Street investors are still bullish on China

October 9, 2021 0:48 am

Foreign investment institutions are still optimistic about China and are raising their bets on the country, Shanghai Securities News said on Friday.

Details: Daily Journal, the company owned by Charlie Munger, boosted its Alibaba stake by 83% to more than 300,000 shares in the third quarter, Securities and Exchange Commission filings show.

Fund giant Fidelity is putting money back into Chinese stocks. Dale Nicholls, the firm's China Special Situations portfolio manager, said he was already dipping back into China's equity markets. The manager claimed that the risk-reward for Chinese stock is stacking up quite well, and the IT area is probably presenting the most opportunity right now.

After cutting huge positions of Chinese stocks across the Ark Funds ETFs in the past few months, Cathie Wood has recently bought back Tencent, JD.com, and Pinduoduo.

Citing Chin-Ping Chia, head of China-A Investments at Invesco Asia, the state-owned media said as China's influence in the global economy further strengthens, long-term investors may achieve substantial returns by appropriately holding assets related to the "New Economy".

“China has become one of the most digitized economies in the world, and the strengthening of supervision will promote healthy and sustainable competition in the Internet sector," said Chia.

Context: Although China has tightened its control over business and economy and brought great volatility to the market, the Wall Street firms argue that the country is too big to ignore and that its stocks are too undervalued to pass up.

According to Morningstar, US mutual funds and exchange-traded funds investing primarily in China held $43 billion in net assets at the end of August, up 43%, a year-on-year increase of 43%, or $13 billion.