Chinese stocks are set to extend their world-beating rally, albeit at a slower pace, as breakthrough artificial intelligence (AI) technology is set to fuel earnings growth and boost valuations, according to global investment banks.
Foreign investors have been increasing their holdings of Chinese stocks in an orderly manner, and this rotation of funds from regional markets suggested that any re-rating of Chinese equities could lead to significant capital inflows, they said.
“We have observed that some Asia-Pacific regional investors have already taken action,” said Kevin Liu, chief offshore China and overseas portfolio strategic analyst at CICC Research. “Their positions are equal weight or even overweight.”
“A short-term fluctuation doesn’t equal a pullback, and markets might go up if there are new catalysts.”
Hong Kong stocks slipped for a third straight day on Tuesday, tracking losses in major Asian markets, amid…
