Overseas index funds tracking Chinese A-shares and Hong Kong-listed H-shares saw significant net inflows last week, signaling renewed global investor confidence in Chinese equities amid improving macroeconomic conditions and technological advancements.
Emerging market ETFs listed in the U.S. attracted over 800 million U.S. dollars last week, with 571 million directed toward funds focused on Chinese A-shares and H-shares, marking the highest among emerging markets.
"Global investors are gravitating toward Chinese assets due to the government's intensified macro-policy support, including a higher budget deficit ratio reflecting its resolve to stabilize growth. The measures to boost domestic demand and consumption reflect a strong emphasis on people's livelihoods. The latest retail sales data, showing both year-on-year and month-on-month growth, prove these policies are taking effect. These factors will continue to bolster international confidence in China's market and attract sustained capital inflows," said Jiang Xianwei, senior global strategist at J.P. Morgan Asset Management.
Experts also highlighted China's technological breakthroughs as a key driver.
"China's continuous advancements in AI and robotics have showcased the world the innovation capabilities of its companies. As these technologies expand into broader applications, they will comprehensively enhance China's competitiveness, spurring demand for hardware and software while fostering new business models. This will further elevate the global appeal of Chinese assets," said Wang Kai, Chief Strategist at Guosen Securities.
Global funds flood into China's A-Shares, H-Shares ETFs as investor confidence rebounds
Chinese expatriates and residents in Myanmar have volunteered to coordinate large-scale relief operations to communities affected by a devastating earthquake in Mandalay, the second largest city in the country.
The 7.5-magnitude quake, which struck central Myanmar on Saturday, has left 1,700 killed, 3,400 injured and 300 missing, according to the Sunday statement from the country's State Administration Council.
Chinese nationals residing in Myanmar swiftly organized aid networks, establishing over a dozen volunteer groups and fund-raising channels to deliver critical supplies to hard-hit regions, including Mandalay.
Relief materials, including drinking water, food, and medical supplies, have been gathered in Yangon, the capital, which serves as the main hub for collecting donations. Local residents began donating these items on Saturday, with plans to transport them to disaster zones as early as Monday.
Many overseas Chinese living in Yangon drove more than 10 hours overnight to deliver supplies, such as antiseptics, gloves and N95 masks, to rescue teams in Mandalay. Many restaurants offered free meals to rescue workers.
The journey to Mandalay has been challenging due to severe damage to roads, with some routes taking more than 10 hours instead of the usual seven.
"Normally it takes seven or eight hours, but now it's a detour that could cost a dozen hours. We didn't suffer big loss. We just do some delivery errands, the least we can contribute. Others have made relatively great contributions. We didn't help much. What's important is to get the supplies there in time," said Li Chengyuan, head of a Rangoon-based logistics company.
Despite the logistical hurdles, the Yangon market remains well-stocked, allowing for the procurement of necessary items at normal prices.
Nevertheless, essential services such as power supply and communications in disaster-hit areas like Mandalay and Nay Pyi Taw have not yet returned to normal, complicating rescue efforts further.
Large rescue machinery is still struggling to enter disaster-hit areas due to the poor road condition between Yangon and Mandalay.
Relief supplies were rushed to the earthquake-stricken areas. On Saturday, China's Yunnan Province launched an emergency response mechanism to prepare tents, blankets, foldable beds and other relief supplies, with the first batch of supplies arriving in Myanmar on Saturday by air.
Chinese volunteers channel relief material shipment to quake-hit Mandalay
