Hedge funds return to the Hong Kong market

According to JPMorgan, interest from hedge fund clients to buy Hong Kong stocks is growing. According to investors, the risks of COVID-19 and the general pessimism around the Chinese economy are receding.

Some analysts believe China's stock market is currently undervalued. The benchmark Hang Seng index of Hong Kong-listed stocks and the CSI 300 index have fallen by nearly a third since mid-February 2021.

Hedge funds have been net sellers of stocks since late April. Now, however, a great buying opportunity is being created by hedge funds, which last week led the way in acquisitions in the Chinese market.