Nasdaq Golden Dragon China Index Jumps 2% as U.S. Investors Boost Chinese Stocks

On Thursday, the Nasdaq Golden Dragon China Index surged by over 2%, with several prominent Chinese stocks listed in the U.S. experiencing significant gains. Leading the charge was Zai Lab Limited (ZLAB.US), which saw its shares rise by more than 12%. Other notable performers included GDS Holdings Limited (GDS.US), which climbed by over 8%, and Hesaitech (HSAI.US), Kingsoft Cloud (KC.US), and Alibaba Group (BABA.US), each of which increased by more than 4%.

The rally in Chinese stocks was driven by renewed interest from U.S. investors, who are increasingly looking to China for investment opportunities. According to a report released on Thursday, U.S. investors' interest in Chinese stocks has reached a five-year high. The report highlighted that over 90% of investors expressed a clear willingness to increase their exposure to the Chinese market, a sentiment not seen since the peak of the Chinese stock market in early 2021. This surge in interest is attributed to several factors, including China's leadership in specific industries, efforts to boost the stock market and stabilize the economy, improved liquidity conditions, and the growing need for investment diversification among investors.

The report also noted that the inflow of foreign capital into emerging markets, including China, has been robust. In August, foreign investors poured nearly $450 billion into stock and bond portfolios in emerging markets, marking the highest level in nearly a year. A significant portion of this capital flowed into China, with net inflows into Chinese bonds and stocks totaling $390 billion for the month. This influx of capital underscores the growing confidence in China's economic prospects and the attractiveness of its financial markets to global investors.