Title: Huijin’s Increase in Holdings in Four Major Banks Restores Confidence; A-Shares Expected to Rebound
Financial World – 2023-10-15
In a recent statement, Ying Ying, the wife of Xu Xiang, expressed optimism in the Chinese economy, citing Huijin’s increase in holdings in the four major banks as a confidence booster. Ying Ying believes that this move, coupled with the recovery of the domestic economy and the peak of U.S. bond interest rates, will lead to a rebound in A-shares.
Earlier this week, China Construction Industry and Agriculture, Industry and Agriculture, and China Construction Bank announced that Huijin had increased its holdings of A-shares through the secondary market. The state-owned asset manager also revealed its intention to continue increasing its holdings in the next six months. This news has restored market confidence, according to Ying Ying.
While the U.S. bond interest rate reached 4.9% in October, marking the highest level since 2007, Ying Ying argues that this does not change the assessment that these rates have peaked. The recent decline in market risk appetite, prompted by the Palestine-Israel conflict, has resulted in foreign capital flowing out of the A-share market. However, Ying Ying remains confident in the domestic economy’s recovery.
Supporting her claims, Ying Ying highlights the manufacturing Purchasing Managers’ Index (PMI), which returned to above 50 in September, and the month-on-month improvement in the construction PMI. These indicators suggest an improving economic landscape in China.
In conclusion, Ying Ying believes that Huijin’s increase in holdings, combined with the peak in U.S. bond interest rates and the recovery of the domestic economy, is a positive sign for A-shares. However, it is important to note that the content, data, and tools in this article are for reference only and do not constitute investment advice. The stock market carries risks, and caution should be exercised when making investment decisions.
Disclaimer: The content, data, and tools in this article do not constitute investment advice and are for reference only. The stock market is risky, so be cautious when investing!