Chinese Assets Surge Over 8% as Foreign Investors Bullish

On June 24, the U.S. stock market saw all three major indices rise by more than 1%, while Chinese assets experienced a significant surge. The Nasdaq Golden Dragon China Index jumped over 3%, the triple-leveraged ProShares China ETF soared over 8%, and the double-leveraged China Internet ETF rose over 6%. This surge in Chinese assets was driven by a combination of factors, including a bullish outlook from major foreign investors and a favorable economic environment.

During the Asian trading session on the same day, the Shanghai Composite Index rose by more than 1%, while the ChiNext Index and other key indices surged by over 2%. This rally was supported by positive sentiment from foreign investors, with Goldman Sachs maintaining an overweight recommendation for both A-shares and Hong Kong stocks. The surge in Chinese assets was also fueled by a significant increase in the size of Hong Kong's equity fundraising market, which has been driven by the revaluation of Chinese assets and the listing of high-quality companies in Hong Kong.

The rally in Chinese assets was further bolstered by a series of personnel changes within the financial arm of the state-owned enterprise, China Resources. The company announced that Liu Xia La had been appointed as the general manager of China Resources Financial Investment, while also stepping down from his role as chairman of China Resources Trust. These changes are part of a broader effort to enhance the company's financial operations and better align with its strategic goals.

The surge in Chinese assets also comes at a time when the Hong Kong stock market has seen a significant increase in equity fundraising. This trend has been driven by the revaluation of Chinese assets and the listing of high-quality companies in Hong Kong, which has provided new growth momentum for the market. The Hong Kong stock market has also benefited from the DeepSeek-led revaluation of Chinese assets, which has attracted significant investment from foreign investors.

The rally in Chinese assets is expected to continue as foreign investors remain bullish on the prospects for the Chinese economy. The surge in Chinese assets is also likely to be supported by the ongoing revaluation of Chinese assets and the listing of high-quality companies in Hong Kong. As the Chinese economy continues to grow, foreign investors are expected to remain bullish on Chinese assets, providing further support for the rally in Chinese assets.