Global funds are accelerating their return to China

On April 3rd, according to the latest data from HSBC Holdings, over 90% of emerging market funds have started to increase their holdings in the Chinese stock market while reducing their investment in India. From February to March this year, global investors have been net buyers of mainland Chinese stocks through the Hong Kong Stock Connect for two consecutive months. The last time this situation occurred was in June and July last year. As of April 2, 2024, the net inflow of northbound funds into A-shares has reached RMB 66.605 billion, exceeding the net inflow amount for the entire year of last year. In terms of market performance, driven by the stimulus measures of the Chinese government, the MSCI China Index has risen more than twice as much as the Indian stock index since February, and the rise of the Indian stock market has cooled down. This is seen by the market as the end and reversal of the "buy India, sell China" strategy, and "sell India, buy China" has become popular.