The article discusses the recent developments in Chinese equities, focusing on investments in companies listed on the Hong Kong Stock Exchange or U.S.-listed firms headquartered or incorporated in China. Mainstream Chinese markets, such as those in Shanghai and Shenzhen, are scheduled to remain closed until October 8.
Scott Rubner, a tactical specialist at Goldman Sachs, expressed optimism about Chinese equities in a note, highlighting unprecedented daily demand. Rubner noted that the markets may not yet have returned to benchmark index weights.
Chinese stocks experienced a turnaround after Beijing implemented a series of stimulus measures to combat a significant economic downturn. These measures included interest rate cuts and reductions in the required cash reserves for banks. This governmental support has fostered renewed optimism among investors, particularly in a market affected by previous economic slowdowns and regulatory constraints.
David Tepper, founder of hedge fund Appaloosa Management, mentioned on CNBC that he is investing heavily in entities related to China, citing the substantial government backing.
JD.com saw a surge of 5% on Wednesday, marking its fifth consecutive day of gains. Similarly, PDD, another e-commerce firm, increased by 4.8%, following an 8% rise the previous day.
