Hedge Funds Snap Up Chinese Equities on Stimulus Optimism.

Hedge funds have recently been buying up Chinese equities in anticipation of the country's new stimulus program boosting economic growth. This surge in buying was driven primarily by investors adding long positions, with a focus on A-shares and to a lesser extent H-shares. Chinese stocks experienced a significant increase on Tuesday following the announcement of measures aimed at boosting the economy, housing sector, and stock market. However, doubts remain about whether Beijing can effectively revive the market and the economy. Hedge funds have been skeptical about Chinese stocks for the past two years, with net sales and allocations at their lowest levels in five years. The CSI 300 Index is currently down less than 1% for the year, reaching its lowest levels since 2019. [Extracted from the article]