Buying stocks

International investors are putting more money into Chinese equities, even as local investors are being cautious in mainland Chinese markets. This was reported by CNBC, citing research by Emerging Portfolio Fund Research (EPFR) Global.

Net inflows into mainland Chinese equity funds totaled $16.6 billion in January, the fourth time since the pandemic when monthly inflows exceeded $10 billion. December saw net inflows of $11 billion, the researchers point out.

EPFR research director Cameron Brandt suggested that "the driving force here is perception especially among institutional investors". In the emerging markets space, investments in China appear relatively safer this year for a variety of reasons, he said. He pointed out that the latest wave of buying is coming from institutional rather than retail investors. The latter's interest in China has fallen since the beginning of last year.

Earlier Bloomberg reported that shares of Chinese companies may start to rise after the end of the weekend associated with the New Year celebrations. Prerequisites to it the agency specified increase of IPO number on Hong Kong stock exchange and decrease of fears about actions of Chinese regulators.