Hedge Funds Snap Up Chinese Equities on Stimulus Optimism
- Chinese stocks saw largest daily net buying since ‘21: Goldman
- But, net allocations remain at lowest level in five years
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Hedge funds rushed to buy Chinese equities in a bet that the country’s new stimulus program can boost growth in the world’s second-largest economy.
Chinese equities on Tuesday saw the largest daily net buying since March 2021 — the second largest amount in the past 10 years, according to Goldman Sachs Group Inc.’s prime brokerage report. Buying was driven almost entirely by investors who added long positions. While funds bought Chinese stocks across all types, the move was primely driven by A-shares and to a lesser extent H-shares.