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China: Foreign capital bets big on Chinese assets amid promising market outlook
Storyline: Foreign capital bets big on Chinese assets amid promising market outlook [Voice_over] Several investment banks have maintained calls of "overweight" on Chinese equities lately prompting some foreign firms to step-up purchases. Goldman Sachs reiterated its "overweight" rating of Chinese stocks, while Standard Chartered Bank, did the same in its Global Market Outlook for H2 this year. Executives from Standard Chartered say government measures to stabilize the economy are boosting optimism. [Sound_bite] Raymond Cheng, Chief Investment Officer for North Asia, Standard Chartered Bank: "There are many factors that support our overweight allocation to China equities, including external as well as domestic forces. Externally, anticipating that China would be highly vulnerable to the trade tensions, but as it turned out China has managed the situation quite well. Domestically, we are seeing more policy support to stabilize the economic growth conditions, including the recent announcement of new birth subsidies. So, as we go into the fourth quarter, we believe there should be more policy support." [Voice_over] Meanwhile, international investment banks are also increasing their holdings in China's stock market. Data from China's State Administration of Foreign Exchange shows that overseas investors increased their H1 holdings of onshore Chinese stocks and funds by over 10 billion U.S. dollars compared to last year. [Restrictions : No access Chinese mainland]
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