People walk on a pedestrian bridge with the Shanghai and Shenzhen stock indices on January 2, 2024 in Shanghai, China.
Hugo Hu | Getty Images
That’s because these funds invest primarily in Chinese stocks traded on the Hong Kong Stock Exchange or in U.S. listed companies headquartered or located in China. Markets in mainland China, including the Shanghai and Shenzhen stock exchanges, will remain closed until October 8.
“I’m bullish on Chinese stocks; this time it’s different,” Scott Rubner, a tactical specialist at Goldman Sachs, said in a note. “I’ve never seen such high daily demand for Chinese stocks. I don’t even think we’ve gone back to benchmark index weights yet.”
Chinese stocks turned around last week after Beijing launched a flurry of stimulus measures to support a deep economic slump, including cutting interest rates and reducing the amount of cash banks must have on hand.
The government’s pledge to deliver strong stimulus provided renewed optimism in Chinese stocks, which have been under pressure in recent years amid a sluggish economy and a crackdown by regulators. David Tepper, founder of hedge fund Appaloosa Management, told CNBC last week that he buys “everything” related to China because of government support.
JD.com rose 5% on Wednesday, rising for the fifth day in a row. Another e-commerce name, PDD, rose 4.8%, following an 8% rally the day before.