Fidelity International reports a unique rally in Chinese stocks, particularly in technology, as fundamentals drive market confidence. Portfolio manager George Efstathopoulos emphasizes advancements in artificial intelligence and improved economic data as key factors. The Hang Seng index in Hong Kong rose 17% in February, signaling a positive investment climate.
Fidelity International has observed a significant rally in Chinese shares throughout February, particularly among technology stocks listed in Hong Kong. However, uncertainties regarding short-term investment strategies have led many investors to remain cautious amidst volatile market conditions. Portfolio manager George Efstathopoulos expresses that this year’s market dynamics appear unique compared to previous years.
Unlike last year’s rallies that were primarily driven by optimism about potential market stimulus, Efstathopoulos asserts that, “this time, fundamentals are in the driving seat.” He highlights the rapid advancement of China’s artificial intelligence sector, including the emergence of firms such as DeepSeek, which illustrates that China is becoming increasingly competitive in technology, countering beliefs regarding its lag behind the United States.
Furthermore, Efstathopoulos notes a positive shift in economic indicators, particularly in consumer spending, indicating the potential effectiveness of fiscal policies in bolstering consumption. He also identifies signs of recovery in the property market. The Hang Seng index in Hong Kong has surged by 17% in February, with the technology subindex, HHSTECH, rising by 24%.
In conclusion, Fidelity International emphasizes a fundamentally driven rally in the Chinese market, contrasting with the speculative optimism of previous years. The rise of technological innovation and positive economic data suggests a more stable environment for investment. Observers are encouraged to reconsider their perspectives on China’s economic resurgence as indicators show promise in both consumption and real estate dynamics.
Original Source: www.tradingview.com
