Buying of Chinese company shares by international investors is at an all-time high, with record inflows. But up until just two months ago, investors were dumping Chinese company stocks.

What explains the sudden change in sentiment? Domestically, the Chinese government intervened and instructed state pension funds to begin buying in February, forming a long-term bottom in the equities markets. But more important, the surge in Chinese factory activity and continued strength in exports has Washington and the EU worried, and investors buying back in.

Resources and links:

Inside China Business, 28 February
   • How did Wall Street lose money in Chi...  

Bloomberg, Chinese stocks see strongest foreign buying
https://www.bloomberg.com/news/articl...

and
https://www.bloomberg.com/news/articl...

China's 2024 exports beats forecasts, signals global trade rebound
https://www.reuters.com/markets/asia/...

China's balance of trade, rolling
https://tradingeconomics.com/china/ba...

Yellen warns China on industrial policy
https://www.axios.com/2024/04/08/yell...

and
https://www.wsj.com/world/china/china...

2023, global investors sell Chinese shares in capitulation trades
https://www.bloomberg.com/news/articl...

and
https://www.scmp.com/business/china-b...

China government instructs pension and sovereign wealth funds to buy ETF's, February 2024
https://www.pionline.com/sovereign-we...

and
https://www.cnn.com/2024/02/06/invest...