Investors are returning: China as an attractive destination for international funds

Investors are returning: China as an attractive destination for international funds

Just a few months ago, international investors were leaving the Chinese stock market, but now there are signs that fund managers are returning to China. In the past, China had become less important as an attractive destination for investors as they increasingly focused on emerging markets outside of China. This led many investors to remove China from their portfolios and instead favor countries such as India, Saudi Arabia and Mexico.

The situation on the Chinese markets now appears to have calmed down somewhat. HSBC's Herald van der Linde said that although there were still challenges that could impact growth, there was a slight improvement compared to last year. Domestic confidence still needs to improve, but the growth path is one of moderation and growth, both for the economy and for corporate profits.

Van der Linde sees one reason for the ongoing weakness in the retreating pension funds from the USA and political decisions that weighed on the market last year. Despite these uncertainties, HSBC has seen an increasing number of international funds increasing their exposure to China. Fund flows from foreign investors through the Northbound channel are increasing, indicating increased interest in China.

Derzeit befindet sich die Stimmung bezüglich der chinesischen Aktienmärkte noch in einem fragilen Stadium, da internationale Investoren langsam ihr Engagement erhöhen. It remains to be seen whether this trend will continue and whether China is actually on the verge of a comeback. Developments on the Chinese markets continue to be the focus of fund managers and investors.