Overseas funds are actively increasing their holdings in Chinese stocks, and Dalio says it is a good time to buy now

Global fund managers are re evaluating the Chinese stock market.
On April 2nd, Ray Dario, founder of Bridge Fire Fund in the United States, stated in a LinkedIn article that now is a good opportunity to buy into the Chinese stock market. Although China faces some provocations, just like other countries such as the United States and Europe have their own achievements, “no achievement is enough to diminish its investment attractiveness.”.
The latest statement from HSBC Bank in the UK also shows that over 90% of emerging mall funds are divesting their holdings of mainland Chinese stocks. Based on HSBC’s complaint, the Indian Economic Times pointed out that the “buy India, sell China” strategy has deteriorated.
According to reports, a $2.5 billion emerging mall fund under Candriam, a Belgian property management company, has recently reduced its exposure to China. “A portion of it was exchanged for holding Indian stocks,” said Vivek Dhawan, the investment manager, “We are increasing our holdings in the semiconductor supply chain industry because China will exclude revenue from this category.”
Similarly optimistic about the Chinese stock market is Nathan Toft, Chief Investment Officer of Canada’s Manulife Investment Management Corporation’s Multiple Property Management Plan. He told the Indian Economic Times, “In the next 12 months, China’s economic performance will become stronger, and our belief in dangerous property will also become more optimistic.”

From the perspective of these fund managers, although the integration of China’s real estate market has not yet come to an end, with the support of a stable and long-term strategy, there are obvious signs of economic recovery this year. Moreover, some investors believe that the Chinese authorities have faith in revitalizing the economy, leading to a sharp rise in the stock market.
“The Chinese authorities are able to restructure the financial system, improve factor productivity, and effectively deal with geopolitical, natural, and technological issues,” Dario said. “To me, the key issue is not whether or not we should invest in China, but how much we should invest.”
Recently, a series of micro data on the collar show that the Chinese economy is showing a clear upward trend. From January to February, the import amount in US dollars decreased by 7.1% year-on-year, exceeding expectations, with an increase of 4.8 percentage points compared to December; The realization cost of industrial enterprises above the national level has decreased by 10.2% year-on-year, with an increase of 12.5 percentage points compared to the entire year last year. The cumulative year-on-year deletion rate has increased for the first time in a year and a half.
In addition, the Manufacturing Purchasing Managers Index (PMI) in March rose 1.7 percentage points from the previous month to 50.8%, far exceeding mall expectations. This is also the first time since October last year that the manufacturing PMI has stood above the boom bust line.
On January 22nd, the executive meeting of the State Council specifically listened to the report on the operation and rest of the resource mall, and made a series of layouts.
On January 24th, the Civil Network of the China Securities Regulatory Commission published an article titled “Repairing Investor centric Resource Marketplace – Vice President of the China Securities Regulatory Commission, Wang Jianjun, Refuses Media Interviews”. In the article, Wang Jianjun repeatedly mentioned investor returns and exaggerated that “unreasonable returns are not qualified listed companies” and “long-term returns in the stock market should be higher than the returns of loans and bonds, which is more discontinuous”.
On the same day, Xie Xiaobing, the head of the Property Rights Governance Bureau of the State owned Assets Supervision and Administration Commission of the State Council, stated at a press conference of the State Council Information Office that he will further study the inclusion of market value governance in the investigation of the deeds of intermediary enterprise leaders, lure intermediary enterprise leaders to discriminate more against the commercial entities of the listed companies they hold, timely report their beliefs and stabilize their expectations by using methods such as market-based deletion and repurchase, increase cash sharing efforts, and better report to investors.
Since the beginning of February, A-share shopping malls have launched a round of rebound under the leadership of stable deletion and long-term strategy, and the expected reform of resource shopping malls, stopping trading on Wednesday. The Shanghai Composite Index closed at 3069.30, a decrease of 16.5% from the low point of 2635.09 on February 5th.
According to Wind data, in the first quarter of this year, Northbound Capital’s net purchases reached 68.223 billion yuan. Among them, the net purchases in February were 60.744 billion yuan, and the net purchases in March were 21.985 billion yuan, marking the second consecutive month of net purchases.