Helena Lyng Blak
11 weeks ago

More stimulus for the Chinese economy?

Are Chinese flows becoming more attractive to foreign investors?
Double exposure of China flag on coins stacking and stock market graph chart
Dilok Klaisataporn, Shutterstock.

Recently, foreign investors have shown hesitancy towards the Chinese economy. But financial analyst Elias Glistrup says an appetite for investing in the world’s second-largest economy may be returning. 

“Latest Q4 2023 data does show some early return of appetite for Chinese exposure,” he says. “But ETF flows remain convincingly negative.”

One factor, Glistrup says, that may prove to be beneficial to foreign investors is China’s promise to up regulatory and compliance frameworks as underscored by Pan Gongsheng, governor of People’s Bank of China (PBOC), in PBOC’s key ministries briefing.

“More interestingly even,” states Glistrup. “China is ramping up market intervention by the ‘National Team’ – the state-related bodies that Chinese authorities lean on to buy stocks during times of turbulence – and further propping up of the stock market seems inevitable.”

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