Foreign Institutions Focus on Chinese Assets; Global Long-Only Funds Raise Allocation to Chinese Equities

During the National Day holiday, overseas markets were anything but calm. The 10-year U.S. Treasury yield briefly broke above 5.352%, hitting a 24-year high. Under the dark cloud of high interest rates, foreign investors' attention to Chinese assets rose rather than fell. The latest Bank of America report shows that global active long-only funds' allocation to Chinese equities has risen from "underweight" to "benchmark neutral," ending a four-year underweight streak. Global asset management giants such as Fidelity International and Wellington Investment Management have also spoken out, actively seeking China's "new generation of winners" amid the complex macro environment.