Chinese equities bought by hedge funds at the fastest pace in 7 weeks

 Hedge funds bought Chinese stocks (NYSEARCA:FXI), (NYSEARCA:KWEB), (NASDAQ:MCHI), (NYSEARCA:GXC) at the fastest pace since the end of June, according to Goldman Sachs’ Prime Brokerage.

The equity buys were driven long buys, and to a lesser extent short covers, at a ratio of 1.9 to 1, Goldman Sachs’ Prime analysts said.

In addition, single stocks and macro products – investments based on macroeconomic trends and events, such as inflation, GDP, geopolitical issues, and fiscal policy – were both net bought, making up 58% and 42% of the total notional net buying, respectively.

“China (NYSEARCA:FXI), (NYSEARCA:KWEB), (NASDAQ:MCHI), (NYSEARCA:GXC) is now the most net bought market on our Prime book so far in August,” analyst said.

Goldman’s Prime book is now over-weight China vs. the MSCI World Index (ACWI) by +4.9%, ranking in the 41^st percentile vs. last year, and in the 16^th percentile vs. five years ago.

Also, within the Prime Book, Chinese equities (FXI), (KWEB), (MCHI), (GXC) make up 5.8% of its gross exposure and 7.3% of its net exposure, ranking in the 94^th and 45^th percentiles vs. last year and in the 48^th and 21^st percentiles vs. five years ago.

Prime Brokerage services exclusively to hedge funds and other institutional investors.

https://www.msn.com/en-us/money/markets/chinese-equities-bought-by-hedge-funds-at-the-fastest-pace-in-7-weeks/ar-AA1KJPud