Investors are monitoring the stock market on December 31, 2020 at the Securities Business Hall in Fuyang, Anhui Province, China.
Costfoto | Barcroft Media | Getty Images
Beijing — Investors bought Chinese stocks last week, despite growing concerns about strict regulations, according to fund research firm EPFR Global.
Many new Chinese regulations for the month since the domestic ride-hailing giant Didi Due to its listing in the United States, Hong Kong, mainland China, and US-listed Chinese stocks plummeted.Sales accelerated after last week’s policy After-school tutor company They especially banned having foreign investors.
However, according to EPFR research director Cameron Brandt, investors, especially institutional investors, have had the opportunity to buy Chinese stocks.
Brant said in an interview on Friday that a fund focused on Chinese stocks had a net inflow of $ 3.6 billion in the week ending Wednesday, of which $ 300 million flowed into Chinese tech funds.
EPFR is a subsidiary of Informa Financial Intelligence, claiming to track over 134,000 traditional and alternative funds with total assets of over $ 49.5 trillion.
Chinese authorities have sought to calm the market. Late Wednesday, securities regulators said in a virtual meeting with a major investment bank: China does not ban its listing in the United States Unless there are national security concerns, sources familiar with the matter told CNBC.
According to EPFR data, another sign that investors’ interest in China continues is much more than in the United States compared to the total amount invested in two categories of equities. Stocks have flowed in.
According to Brant, inflows into US equity funds were about 0.1% of assets under management at the beginning of the week, compared to just over 1% of assets under management in China.
“From a basically relative perspective, the flow to US equity funds was basically one tenth of the flow to Chinese funds,” he said.
But a week hasn’t been a trend, and Brandt points out that the market is increasingly driven by multiple ideas rather than a single story.
The Hang Seng Index and Shanghai Composite Index have fallen by more than 4% in the last five trading days. The KraneShares CSI Index China ETF (KWEB), a US exchange-traded fund for tracking tech stocks in China, has fallen by about 14.5% in the meantime.
Nomura analysts Ziaron Shee and Thomas Shen said in a Thursday report, “We expect the overall regulatory environment to remain harsh this year, but recent sales are a good entry point for long-term investors. I believe it will be. “
“We believe the Internet industry is safe and healthy, with enough elasticity and adaptability to survive the current regulatory storm,” they said. “Second quarter earnings results.
Investors bought Chinese stocks despite regulatory concerns
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