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after the chinese government introduced a series of favorable policies, chinese stocks were “on full fire.” the csi 300 index rose 15.7% last week, marking its strongest weekly performance since november 2008. hong kong's hang seng china enterprises index rose for 11 consecutive trading days, setting a record for the longest rise since 2018.

with the arrival of the national day holiday this week, although the a-share market is closed, the hong kong stock market is still "boiling". as of tuesday's close, hong kong's hang seng index closed up 6.2%, and the hang seng technology index rose 8.53%. chinese brokerage stocks and mainland real estate stocks exploded across the board: ronshine china rose by more than 397%, agile group rose by more than 160%, shimao group rose by more than 153%; china merchants securities rose by more than 81%, citic securities rose by more than 39%, and shenwan hongyuan rose by more than 15%. 33%.

the rise in chinese stocks has not only been pursued by wall street tycoons, but even the japanese stock market has seen a rare phenomenon: a rush to raise chinese assets. it is reported that the a-share csi 500 index listed on the japan exchange closed up 77.8% today at 6,399 points.

in addition, the 2-time long product of the csop csi 300 index listed on the hong kong stock exchange rose by more than 35%, and the 2-time long product of the csop hang seng index rose by more than 12.3%.

at the same time, japanese stocks fell significantly. the nikkei 225 closed down 2.18% on wednesday to 37,808.76 points. japan's topix closed down 1.4% to 2,651.96 points. some analysts say that investors in the japanese and korean markets may be nervous because of the performance of a-shares, and have chosen to reduce their holdings of stocks and rush to raise chinese assets.

on the other hand, hedge funds known as “smart money” are also pouring into china crazily.

the latest report released by goldman sachs shows that driven by the chinese government’s stimulus measures that far exceeded expectations,global hedge funds have piled into chinese stocks, leading to the strongest weekly buying on record last week (september 23-27).

goldman sachs reported that hedge funds "dramatically" accelerated their allocations to chinese assets, with purchases of chinese stocks in the week of september 23-27 reaching the highest level since the bank began keeping records in 2016.

according to the above report, capital inflows are mainly long positions, especially long positions on individual stocks,buying was mainly concentrated in the consumer, industrial, financial and information technology sectors. energy was the only sector to see modest selling from hedge funds.

in addition, a sharp rebound in china's stock market helped china-focused stock-picking hedge funds achieve a 6% return last week, goldman sachs' best weekly performance on record. so far this year, these hedge funds have returned an estimated 12.8%.

it is worth noting thatnot just hedge funds and speculators, but many foreign long-term investors are now worried about missing out.foreign equity exchange-traded funds (etfs) focused on chinese stocks received $2.4 billion in inflows in the last three trading days of september, according to lseg data, which compared with $2.7 billion in the year-to-date period through september 25. the outflow is in stark contrast.

investors and analysts say that while underweight chinese stocks have been the biggest consensus trade over the past few years amid a bleak economic outlook and geopolitical tensions, the tide is now turning.

wee khoon chong, senior market strategist for the asia-pacific region at bank of new york mellon, said: "we have seen a sharp increase in buying interest in chinese stocks as we enter china's national day holiday. this is encouraging,it suggests a possible shift in global investor sentiment toward china after a long period of capital outflows.