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China Asset Prices To Restore Amid Capital Inflows

CHINA PRESS
MNI (Singapore)

China’s asset prices are expected to be fully restored as various funds rush to allocate to Chinese stocks, Shanghai Securities News reported. Active private equity positions have rapidly increased to 76% from 65% since end-March, while northbound funds have flowed in rapidly with a net of CNY32.9 billion since April 22 mainly to the banking, food and beverage, nonferrous metals, pharmaceuticals and basic chemicals sectors, according to CITIC Securities. However, analysts from Soochow Securities argued that the entry of larger-scale and longer-term funds into the market requires a more solid turnaround of economic fundamentals.

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