China’s Sudden Stock Rally Sucks Money From Rest of Asia
- Atlantis trimmed Asia long positions to fund China purchases
- MSCI China Index has climbed more than 30% from a recent low
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A strong rebound in Chinese stocks is set to trigger a shift in global portfolios as some investors rush to catch the rally.
A wave of money which earlier left Chinese equities in favor of stocks from Japan and Southeast Asia is poised to reverse course after Beijing’s latest stimulus blitz, according to market watchers. The shift is already underway: shares in South Korea, Indonesia, Malaysia and Thailand posted net outflows last week while BNP Paribas SA said over $20 billion was withdrawn from Japan’s equities in the first three weeks of September.