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Global investors bet on value of China's A-shares

Xinhua News,BEIJING
2020-06-18 17:55

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BEIJING, June 18 (Xinhua) -- As China's economy grows stronger and its financial markets accelerate opening up, global investors have doubled down on investment in China's markets, Shanghai Securities News reported on Thursday, citing analysts.

By Wednesday, net capital inflows through northbound trading, or money invested from Hong Kong into the Chinese mainland through the stock connect programs, has topped 90 billion yuan (about 12.7 billion U.S. dollars) since the beginning of this year, according to data from financial information provider Eastmoney.com.

Apart from March, when overseas stock markets tumbled, the A-share market has reported net capital inflows through northbound trading in every month so far this year, the newspaper said.

Laura Wang, a strategist at Morgan Stanley, believes that now is a good time to invest in the A-shares.

Foreign holdings in A-share markets are still relatively low, according to Wang.

"China's stock market is more resilient than people expected. Even though the stock market slumped sharply on the first trading day after China's Spring Festival holiday, it rebounded significantly the next day," said Shi Bin, head of China Equities at UBS Asset Management-China.

From the macro perspective, the global economy is showing signs of improvement, and China's economic fundamentals have stabilized, Shi said, showing that the A-shares possess long-term investment opportunities.
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