As the countdown to the US election progresses, the AH shares are experiencing a general upward trend. On Monday (November 4), the Hang Seng Tech Index ended a four-day decline, and the Growth Enterprise Market Index rose nearly 2%. More than 4,000 stocks in the A-share market increased, indicating a recovery in market confidence. Meanwhile, international institutions such as BlackRock, Goldman Sachs, Allianz, Barings, Pictet Asset Management, and the well-known hedge fund Point72 are conducting intensive research on A-share listed companies and frequently expressing optimism about Chinese assets. It is expected that the A-share rebound trend will continue.
According to Wind data, in the third quarter of this year, QFII (Qualified Foreign Institutional Investors) entered the ranks of the top ten tradable shareholders of more than 200 A shares. Among them, Middle Eastern sovereign wealth funds represented by the Kuwait Investment Authority and the Abu Dhabi Investment Authority made significant purchases of Chinese assets. Several foreign institutions believe that as China's economy recovers, the A-share market gradually exhibits "safe haven" characteristics. Particularly when the global macroeconomy faces challenges, the resilience shown by the Chinese market is a great attraction for international investors.
Goldman Sachs pointed out that emerging market funds are continuously increasing their exposure to the Chinese and North Asian markets and expect that global market uncertainty will decrease after the election, potentially accelerating foreign capital inflow. Coupled with the pressure of a global economic slowdown, foreign institutions generally have a positive outlook on the potential performance of A shares in the future. Goldman Sachs analysis stated that with China's economic stimulus policies and the anticipated interest rate cuts in the US, the overall outlook for emerging market equities is optimistic. It is expected that the Chinese market may outperform other regional markets in 2024. The influx of foreign capital will inject new liquidity into the A shares, further strengthening the safe haven attribute of the A-share market.
