China - October 22, 2024

Global financial institutions increase investments in Chinese assets

(Voice_over)

A broader than expected stimulus package announced by Chinese authorities is prompting international financial institutions to increase investments into the country.

At the end of September Chinese authorities announced several measures to boost the country's housing market including a drop in mortgage lending rates and an easing of eligibility rules for homebuyers.

The result has been an increase in investment from global banking institutions like J.P. Morgan Chase, who increased its holdings of Chinese assets by 530 million U.S. dollars on news of the stimulus.

Other firms, meanwhile, like Switzerland's UBS, and asset manager BlackRock from the United States, have increased their investment ratings for China's A-share stocks.

(Sound_bite)

Peter Pak, executive director, BOCI Securities Limited:

"Statistics show that during the last three trading days of September, funds flowing into Chinese stock exchange-traded funds (ETFs) products reached 2.4 billion U.S. dollars, a figure almost matching the total inflows into similar products over the previous nine months."

(Voice_over)

Economists with Morgan Stanley China said the firm saw a wave of interest in Chinese assets during the week-long National Day holiday from Oct 1-7th.

(Sound_bite)

Xing Ziqiang, Chief economist, Morgan Stanley China:

"During the 'Golden Week' National Day holiday, which is the busiest week in my 20-year career in international financial institutions, I have interacted with over 3,500 overseas international investors through visits and phone calls. Their confidence in the Chinese economy is gradually recovering."

(Voice_over)

Chinese authorities hope this latest round of measures to boost the housing market and spur consumer spending will help meet the country's expected five percent economic growth for this year.

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