During China’s National Day holiday, the US 10-year Treasury yield briefly rose
above 5.34%, a 24-year high, but foreign investor interest in Chinese assets has
increased. Bank of America says global active long funds have moved from
underweight to neutral on Chinese equities, ending a four-year underweight.
Fidelity International, Wellington and other global managers have likewise
signaled increased focus on China. Goldman Sachs calls Chinese attractive assets
for diversification and prefers A-shares to H-shares. UBS forecasts A-share
earnings growth of about 15% in 2026. BLACKROCK maintains a neutral stance on
China equities while highlighting AI hardware, power-grid equipment and physical
AI as areas of focus. INVESCO is constructive on China’s technology ecosystem.
CITIGROUP and Standard Chartered previously upgraded Chinese equities to
overweight.
