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a strong rebound in chinese stocks will trigger a shift in global portfolios as some investors scramble to catch up.

market observers say funds that had previously left chinese equities and moved to japanese and southeast asian equities are about to return following china's latest stimulus measures. the shift has already begun: stock markets in south korea, indonesia, malaysia and thailand saw net outflows last week; bnp paribas said more than $20 billion had been withdrawn from japanese stocks in the first three weeks of september.

the burgeoning transfer of funds could spell the end of a stellar run for asian stocks ex-china, which benefited as fund managers looked for better returns outside of the world's second-largest stock market.

eric yee, senior portfolio manager at atlantis investment management in singapore, said it was cutting long positions in asia to fund purchases of chinese stocks. everyone is doing it. driven by policy, this is a good bottom rebound. you don't want to miss out on this opportunity.

the msci china index is up more than 30% from recent lows as the government announced a series of measures to revive economic growth. trading volumes in both mainland china and hong kong hit record highs on monday.