Citation :
Foreign purchases of Chinese equities have hit their highest level in four years, in a sign global investors are reassessing a market that until recently was considered “uninvestable”. “China still trades at a record discount to the rest of the world and yet they have some of the best companies in the tech space,” Jonathan Pines, head of Asia ex-Japan equity at Federated Hermes. “They’re the only realistic competitor to the US in some spaces.” Some investors are keen to gain exposure to innovative Chinese technology companies, in part as a way to diversify out of US markets trading near record highs. Stocks such as Alibaba remain off their peak valuations and trade at discounts to US counterparts. “You don’t want to put 100 per cent of your portfolio in Nasdaq,” said Morris.
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