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financial news agency, october 5 (editor zhao hao)on friday (october 4), the hang seng china enterprises index closed up 3.06%, closing at a new high in two and a half years. it has rebounded 36% from the low in september, with most of the gains occurring after september 24.

hang seng china enterprises index weekly chart

on september 24, the main leaders of the people's bank of china, the state administration of financial supervision, and the china securities regulatory commission jointly held a press conference and launched a series of favorable policies and measures. the intensive introduction of policies has released a strong signal that stabilizes expectations, strengthens confidence, and supports high-quality economic development.

since that day, the hong kong state-owned enterprises index has soared from around 6,400 points to the current 8,156 points, and some constituent stocks have experienced astronomical gains. while triggering a wave of buying, many financial institutions including blackrock also turned bullish on chinese assets.

dalio, founder of bridgewater associates, said that if china’s decision-makers can deliver on measures that “far exceed” their commitments, this round of economic stimulus measures will become a historic turning point. considering that chinese assets are still very cheap, multiple factors have jointly ignited the market's "animal spirits", and a large number of investors have entered the market to hunt for dips.

eric yee, senior portfolio manager at atlantis investment management in singapore, said, "we are cutting long positions across asia to fund purchases of chinese stocks. everyone is doing it. this is a good policy-driven recovery. you won't want to miss it. such an opportunity.”

victoria mio, head of equities for greater china at janus henderson investors, wrote in a report that valuations in china's stock market are currently attractive, with positive momentum in the technology, healthcare and financial sectors, which are most likely to benefit from increased liquidity and support. benefit from sexual policies.

mio believes that under the influence of multiple factors, this round of stimulus is completely different from the past and is expected to form a lasting momentum. the chinese stock market may perform better than other developed and emerging markets in the next few quarters.

citi analysts mentioned that leisure travel demand during the golden week holiday is resilient and tourist traffic is strong. data previously released by china railway group showed that on october 1, 21.448 million passengers were sent by railways across the country, setting a record high in single-day passenger volume.

in the hong kong stock market on friday, meituan, alibaba, jd.com, etc. were the largest contributors to the rise in the state-owned enterprise index. among u.s. stocks, alibaba rose by 6.71% this week, while jd.com rose by 17.72%, supporting the nasdaq china golden dragon index which rose by 11.85%.

nasdaq china golden dragon index daily chart

nikolaos panigirtzoglou, a strategist at jpmorgan chase, wrote in a report: "the sharp rise in chinese company adrs (american depositary receipts) over the past week was mainly the result of new buying rather than short covering. short covering of individual stocks seems to have only had the effect of very small effect.”

both s3 partners and morgan stanley said that if short sellers are forced to exit their bets, it may give chinese concept stocks further momentum. ihor dusaniwsky, general manager of s3 predictive analytics, said that if the rally continues, he expects "significant" short covering, which will further push the stock price higher.

this week, the asset size of many overseas-listed chinese etfs continued to increase, such as kraneshares china overseas internet etf (kweb), msci china etf-ishares (mchi), ishares china large cap etf (fxi), etc.

at the same time, the "china dragon" etf from the well-known fund company roundhill landed on the us stock market mid-week with the code "drag". roundhill ceo dave mazza said what sets drag apart from other etfs is its concentration.

source: roundhill official website

roundhill focuses on providing innovative etfs. last year, it launched the magnificant seven etf (mags), which tracks seven stocks: nvidia, google-a, apple, tesla, amazon, microsoft and meta. it was named the "most popular stock of the year" by etf.com. "jiaxin etf".

similar to mags, drag only tracks the stocks of nine chinese companies, namely (in order of weight) meituan, xiaomi, netease, pinduoduo, jd.com, tencent, byd, alibaba and baidu. roundhill regards these targets as china’s version of the “big seven” of u.s. stocks.

mohit bajaj, head of etfs at wallachbeth capital, said: "we are seeing a gradual return to emerging markets. if people believe that china can continue to perform like this, then the etf may do well."