JP Morgan Chase & Co. increased its holdings in China’s leading insurance company, the Ping An Insurance Group with an additional 1 billion Hong Kong dollars on Monday.
According to Ping An’s announcement, JP Morgan bought 13.62 million shares of Ping An’s H-shares for 73.44 Hong Kong dollars per share. JP Morgan held an aggregated 1.27 billion shares of Ping An’s H-shares after the move.
Foreign capital has kept flowing into China’s A-share market since the end of October this year. As of now, the fund inflows have amounted to 62.45 billion yuan (9.07 billion U.S. dollars) since November.
There were 17.39 billion yuan (2.52 billion U.S. dollars) and 12.14 billion yuan (1.76 U.S. dollars) of foreign capital flowing into the A-share market on Nov. 2 and Dec. 3 respectively, hitting a record high in its history.
Foreign capital is flowing from developed stock markets with high valuations to emerging markets. Besides, International data providers MSCI and FTSE’s inclusion of China’s A-shares into their flagship indices also facilitated this process, said China’s investment bank the China International Capital Corporation Ltd. (CICC).
According to China’s financial data provider Wind, chemical, electronics and medical biotechnology are the most popular industries where foreign investors have invested.
Also, the inflows of foreign funds and domestic funds are moving in opposite directions regarding the banking and real estate sectors, where foreign capital has increased its holdings while domestic funds have declined, which reveals their different economic expectations in these two areas, CICC said.
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