A series of data disclosed recently shows that global funds are increasing the allocation of Chinese assets. According to the latest data from Goldman Sachs Group's prime brokerage department, hedge funds bought stocks in all regions of the world last week, including Chinese stocks for four consecutive weeks. In addition, in the latest stock strategy report, Goldman Sachs raised the 12-month target of the CSI 300 Index from 3900 to 4100, maintaining its "overweight" rating on A-shares. Many institutions said that the continued volatility of overseas markets and the gradual improvement of China's economic fundamentals were the main reasons for attracting foreign investment.

Choice data shows that as of May 20, northbound funds have bought net for four consecutive months since February. Since this year, the total net purchase amount of northbound funds has been 93.181 billion yuan, which has exceeded the net purchase amount of 90.02 billion yuan in 2022 and 43.7 billion yuan in 2023.

According to the recently disclosed US 13F document, in the first quarter of this year, a number of asset management giants made a large increase in their positions in China concept stocks. Specifically, Singapore's sovereign wealth fund Temasek Fund built KraneShares China Overseas Internet ETF (KWEB) with more than 1.5 million positions in the first quarter. By the end of the first quarter, Temasek held 9.2 million Alibaba shares, 301400 Baekje China shares and 3.6 million JD shares.

Bank of America bought 5.18 million shares of JD stock in the first quarter, and the market value of its position reached 180 million dollars; Purchase 2.91 million shares of Pinduoduo, with a market value of 474 million dollars; Buying 5.86 million Alibaba shares, the market value of the position reached 715 million dollars.

Hedge funds managed by Michael Barry, a well-known fund manager on Wall Street, increased their holdings of JD shares and Alibaba shares by 160000 shares in the first quarter of this year. As of the end of the first quarter, the two stocks accounted for 9.53% and 8.74% of their portfolios respectively.

Appaloosa, an asset management institution founded and managed by David Tepper, an American hedge fund magnate, bought 6.9 million Alibaba shares in the first quarter, more than doubling its holdings. After adding positions, Alibaba became the largest heavy position stock in its US $6.7 billion stock portfolio, accounting for 7.39%. In addition to Alibaba, the fund also increased its holdings of 1.32 million shares of Pinduoduo and 1.17 million shares of Baidu in the first quarter. As of the end of the first quarter, these two shares accounted for 3.61% and 2.81% of its portfolio respectively.

With regard to the "sweeping" of foreign capital, Liu Hui, a senior fund manager of Kingsoft Investment, analyzed that the fluctuations of US and Indian stocks and the sharp depreciation of the yen in the early period made foreign capital consider diversifying into other markets and began to allocate more Chinese stocks.

"We have seen positive signals from three perspectives: economic fundamentals, policies and liquidity. We believe that although there may be short-term fluctuations, in the medium term, the trend of net inflows of capital from the north is expected to continue." Zhu Bingqian, chief strategist of Luboma Fund, said.

From the perspective of liquidity, Zhu Bingqian said that under the background of the obvious depreciation of the yen and the rising volatility of overseas assets, A-shares and Hong Kong shares with Chinese assets, valuation advantages, global liquidity sensitive assets and other characteristics were boosted by the "liquidity spillover" effect.

On the reason why China's Internet leaders are favored by asset management giants, Liu Hui said that the improvement of fundamentals and policies, together with the relatively low valuation in history, are the reasons why they have attracted additional positions: on the one hand, Internet business, especially e-commerce, has a strong correlation with economic recovery, The recovery of China's macro-economy and consumption has directly promoted the improvement of Internet companies' fundamentals; On the other hand, the stock prices of Chinese Internet companies continued to retreat in the past few years, and the current valuation is at a relatively low historical level.