Hedge Funds Accelerate Purchases of Chinese Equities at Highest Rate in Seven Weeks
Hedge Fund Activity: Hedge funds have rapidly increased their purchases of Chinese stocks, marking the fastest buying pace since late June, as reported by Goldman Sachs’ Prime Brokerage.
Buying Trends: The equity buys were primarily long positions, with a ratio of 1.9 to 1 compared to short covers; macro products and single stocks accounted for 58% and 42% of total net buying, respectively.
Market Positioning: China has become the most net bought market in August according to Goldman Sachs, with the Prime book overweight in Chinese equities compared to the MSCI World Index.
Equity Exposure: Chinese stocks constitute 5.8% of gross exposure and 7.3% of net exposure within Goldman’s Prime Book, indicating significant interest relative to previous years.
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SPDR® S&P China ETF announces dividend of $1.3241
Dividend Declaration: SPDR® S&P China ETF (GXC) has declared a semi-annual dividend of $1.3241 per share, payable on December 29 for shareholders of record on December 22.
Yield Information: The 30-Day SEC Yield for GXC is reported at 1.51% as of December 18.
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- S&P 500 Performance: The S&P 500 has seen an 18% increase this year, reflecting strong performance in the U.S. market.
- FTSE 100 Outperformance: The FTSE 100 has outperformed the S&P 500 with a nearly 21% rise, marking its best year since 2009, despite limited exposure to technology stocks.
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SPDR® S&P China ETF announces dividend of $1.3241
Dividend Declaration: SPDR® S&P China ETF (GXC) has declared a semi-annual dividend of $1.3241 per share, payable on December 29 for shareholders of record on December 22.
Yield Information: The 30-Day SEC Yield for GXC is reported at 1.51% as of December 18.
Market Performance: Asian markets are experiencing gains, with the Nikkei rising 2% and surpassing the 50,000 level, as the People's Bank of China (PBoC) maintains key lending rates for the seventh month.
Investment Outlook: GXC is viewed as a solid investment option for broad exposure to the Chinese market, featuring a low-teen price-to-earnings ratio and a strong performance chart.
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MetaX IPO Success: Shares of China's MetaX Integrated Circuits surged 700% on their market debut, driven by investor excitement over a government initiative to lessen reliance on U.S. AI chip manufacturers like Nvidia and AMD.
Financial Highlights: The company raised approximately $600 million in its initial public offering, with shares debuting at 700 yuan, significantly above the IPO price of 104.66 yuan, and reaching a peak of 895 yuan during early trading.
Market Impact: The dramatic price increase has created substantial arbitrage opportunities for pre-IPO investors, with analysts suggesting that the stock may have reached its peak for the next five years.
Investor Interest: MetaX's IPO was highly oversubscribed, with retail investors showing strong demand, as evidenced by the share sale being over 4,000 times oversubscribed.
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Biren Technology's IPO Plans: Shanghai-based AI chip startup Biren Technology is set to launch an IPO in Hong Kong after receiving approval from China's securities regulator, with plans to issue up to 372.5 million ordinary shares.
Share Conversion and Marketing Timeline: The company will convert approximately 873 million onshore shares into Hong Kong-listed stock, with marketing potentially starting this month and trading expected to begin in January 2026.
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