On Tuesday (5th), the A-share market opened lower and closed higher, with the ChiNext Index rising over 3%, and the Beijing 50 Index rising more than 5%, with more than 4,400 stocks increasing market-wide. This year, Chinese listed companies have started the largest buyback wave in history. As of October 20, the repurchase amount in the A-share market has reached 148.2 billion yuan, and the Hong Kong stock market buyback amount has reached as high as 202.1 billion yuan, totaling 350.3 billion yuan, setting a new record.
This massive buyback has enhanced the attractiveness of China's capital market, and global funds have been pouring into the Chinese stock market. According to the global capital flow report released by Goldman Sachs, in the four weeks up to October 30, the global net inflow into stock markets amounted to 63.628 billion USD, with the Chinese mainland stock market attracting a net inflow of 24.385 billion USD (about 170 billion yuan). In contrast, the U.S. stock market saw an inflow of 37.228 billion USD, while the Japanese and Indian stock markets saw net outflows of 6.063 billion USD and 284 million USD, respectively.
Goldman Sachs strategists stated that the Chinese stock market has shown strong resilience amidst recent volatility, even avoiding large-scale sell-offs during the repricing of Trump-related risks. Goldman Sachs predicts that within 2 to 3 months after the U.S. election, the Chinese stock market will experience a new round of increases, with risk sentiment potentially further improving.
