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some investors even believe that china's stock market has entered a "historical climax." dalio, the founder of bridgewater associates, publicly expressed this view on linkedin, saying that china's policy shift provides an important foundation for creative productivity and may become an indelible and important moment in the history of market economy. sylvia sheng, global multi-asset strategist at jpmorgan chase, also said that the changing outlook for china’s economy and positive signals from the government and regulatory agencies have provided new underlying support for market prices.
but the shift in market sentiment is not based solely on policy or expectations. it is more like an "animal spirit" awakening, an awakened investor enthusiasm. hedge funds and mutual funds, whose past hesitation and under-positioning mentality have been diluted, have begun to actively deploy the chinese asset market. they are eager to seize opportunities and profit from market turmoil.
gabriel sacks, emerging markets portfolio manager at standard life (abrdn), also believes there is more upside than downside in the chinese market and has "selectively" bought chinese stocks. they await more detailed policy plans from the government to further assess risks and opportunities. ling vey-sern, managing director of union bancaire privee in singapore, is more cautious. “people’s interest in chinese assets is definitely picking up,” but the market’s motivations for continuing to pursue chinese assets are unclear.
however, this is indeed a controversial moment for those investors who still have reservations. they need to weigh risk versus reward and make investment decisions carefully.