The narrative that even Chinese investors won't dare touch Chinese stocks is a fallacy.
Yes, they aren't encouraged to invest due to the market's poor performance over the years.
But just take a look at $Alibaba(BABA)$ $BABA-W(09988)$ 's Stock Connect Inclusion and the narrative falls to pieces.
In its first 4 days of inclusion, qualified mainland investors bought 142 million HK-listed shares of Alibaba.
It's just a drop in the bucket compared to the company's total outstanding shares. But last week's mainland buying was equivalent to 33% of the total volume in HK.
That doesn't tell me Chinese investors don't want to invest. It tells me the opposite.
Lack of interest in A shares is reflective of bear market sentiment that you see happen almost anywhere especially in Asian markets. You should see the trading in places like Philippines, Thailand and Singapore during bear markets. Traders literally were falling asleep on their desks. 😂
Chinese are interested in H Shares not just because Alibaba is new and fresh. They’ve bought up nearly 50% of the CSOP Hang Seng Tech Index ETF via the stock connect.
https://x.com/BrianTycangco/status/1835134873335742800
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