Chinese Industrial Stocks Outperform as Fund Managers Shift Focus from Property Slump
China's CSI300 has surged 16% year-to-date, mirroring S&P 500 gains, while Hong Kong's Hang Seng rockets 30% toward its best annual performance since 2017. The rally contrasts sharply with last year's stimulus-driven euphoria, as lingering property sector woes—exemplified by China Vanke's troubles—continue to weigh on sentiment.
Foreign capital is flooding back, with HK$1.38 trillion ($177B) mainland inflows revitalizing Hong Kong markets. Shenzhen Rongzhi Investment's Xia Fengguang cites corporate governance improvements and Beijing's anti-involution campaign as key drivers, predicting margin expansion across industrial sectors.
Notably, AI-related stocks gained traction following DeepSeek's chatbot release, though no direct cryptocurrency exposure was mentioned in this industrial-focused rebound.
