Chinese shares in the path for the best hedging fund entrance flow in 6 months, said Morgan Stanley

Global Hedge Funds increase their bet on Chinese shares, with August on the track to mark the largest monthly purchase since February, a record of Morgan Stanley showed.

The purchase of hedging funds has been “very tilted towards (land) A-Samham” since the beginning of August, Morgan Stanley said, very contrasting with the entry of funds into the heavy stock market of Hong Kong technology in February after the breakthrough intelligence made by Deepseek.

According to the sector, consumer and industrial staples attracted most of the entrances last week, according to Morgan Stanley Note on Tuesday.

Meanwhile, hedging funds sell internet giant stocks listed in Hong Kong through a combination of reduced long positions and short sales.

Chinese land shares, who were lagging behind regional colleagues in the first half of this year, held a general meeting in the third quarter and reached the highest 10 years this month.

Benchmark jumped 12% while Blue-chip jumped 9% so far this month.

Abundant liquidity, coupled with optimism around the US-China trade talks, has increased sentiment, analysts said.
Long-Short equity funds focused on China on average rose 3% this month until August 22, extending the increase in the year to 13.5%, Morgan Stanley’s estimate.
Source: Reuters