Market Response to China's Stimulus Measures: Impact on ETFs and Stocks
Following the announcement of a significant economic stimulus package by the Chinese government, stocks and financial products related to China, listed in South Korea and the US, have shown a notable uptrend. Notably, the KWEB ETF, which invests in Chinese internet companies, has seen an inflow of over $1.4 billion, while significant funds have also moved into the iShares China Large-Cap ETF. In addition to these ETFs, companies like Wynn Resorts, Qualcomm, and Albemarle, which benefit from Chinese connections, are also experiencing positive impacts. Morgan Stanley has projected long-term growth for Chinese oil, financial, and component stocks.
Moreover, domestically listed China-related financial products are seeing substantial interest from investors, boasting returns ranging from 19% to over 40%. Experts anticipate that the current upward trend will persist for a while but advise keeping a close watch on the fiscal policy announcements at the National People's Congress scheduled for mid-October. Furthermore, with the disappearance of a possible rate cut by the US Federal Reserve, analysts suggest that China's monetary policy may face limitations.
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