Foreign Investors Eye Chinese Assets as Global Long Funds Raise China Stock Allocations

During the National Day holiday, global markets remained volatile. The yield on the 10-year U.S. Treasury briefly surged above 5.352%, hitting a 24-year high. Amidst the shadow of high interest rates, foreign attention to Chinese assets has not waned but increased. A latest report from Bank of America shows that global active long-only funds have raised their China stock allocations from 'underweight' to 'neutral,' ending a four-year period of underweight positioning. Global asset management giants including Fidelity International and Wellington Management have also weighed in, actively seeking China's 'next-generation winners' amidst complex macroeconomic conditions.