China's Stock Market Surge: Investors Bet on AI, Resilience

Chinas stock market is experiencing a resurgence, attracting global investors due to its robust AI sector and economic resilience. Major firms like Amundi and Fidelity International predict continued growth until 2026. JPMorgan Chase recently upgraded its outlook, signaling a positive shift. George Efstathopoulos of Fidelity International believes investors are now embracing an investible China, suggesting buying during market dips could be smart. This renewed interest marks a reversal from previous outflows, with foreign long-only funds purchasing around ten billion dollars in mainland China and Hong Kong shares. However, active fund managers remain cautious due to economic slowdown and past government crackdowns. The optimism is largely based on a growing class of tech giants in areas like chips, biopharma, and robotics. Chinese stocks remain relatively inexpensive compared to global counterparts. While the market is expected to continue its rally, investors should temper expectations for massive returns. The potential for a significant boost also comes from Chinas vast household savings, estimated at twenty-three trillion dollars.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.