Foreign investors spend record in Chinese stocks

Foreign investors spend record in Chinese stocks

The foreign investors have not waited long to set a new record in purchases of Chinese actions.

Encouraged by the optimism that China Y U.S can overcome their commercial differences, international investors bought Chinese securities for 17,400 million yuan (US $ 2,500 million) through commercial links with Hong Kong on Friday. This figure is more than twice the record set a day earlier and erased net sales in October, according to data compiled by Bloomberg.

Shares of China and Hong Kong rebounded on Friday afternoon after news broke that President Donald Trump wants to reach a trade agreement with Chinese President Xi Jinping at the Group of 20 summit (G20 ) of this month. The Shanghai Composite index rose 2.7% on Friday, but still registers a 19% drop so far this year amid concerns over the trade dispute, the slowdown in the Chinese economy and the weakening of the yuan.

"Investors believe that the A shares will fare better than the Hong Kong values ​​with China's policies of supporting the economy and the capital market, so we are seeing a large influx," said Ken Chen, analyst Shanghai-based KGI Securities Co. "This shows a recovery in the confidence of foreign investors in A shares."

ASIAN MARKET
China opened its first stock exchange with Hong Kong at the end of 2014, which allowed foreign investors unprecedented access to the country's stock market. The Shanghai-Hong Kong link was followed by a similar measure with the Shenzhen city two years later.

China has raised the daily quotas for stock exchanges this year.

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