People walk on a pedestrian bridge displaying the Shanghai and Shenzhen stock indexes on January 2, 2024 in Shanghai, China.
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That's because these funds invest primarily in Chinese stocks that trade on the Hong Kong stock exchange or U.S. exchange-listed companies headquartered or incorporated in China. Markets in mainland China, including the Shanghai and Shenzhen stock exchanges, will remain closed until October 8.
“I'm bullish on China stocks; this time is different,” Goldman Sachs tactician Scott Lubner said in a report. “I've never seen daily demand for Chinese stocks this high: I don't even think we have There is no return to benchmark index weights.”
Chinese stocks improved last week after Beijing launched a series of stimulus measures to combat a severe economic recession, including cutting interest rates and reducing the amount of cash banks need.
The government's vow to provide strong stimulus has sparked renewed optimism in China's stock market, which has been battered by an economic downturn and regulatory crackdowns in the past few years. David Tepper, founder of hedge fund Appaloosa Management, told CNBC last week that he was buying “everything” related to China because of the government's support.
Jingdong It soared 5% on Wednesday, rising for the fifth consecutive day. Another e-commerce brand, Pinduoduo (PDD), rose 4.8% after rising 8% the previous day.