By Nell Mackenzie
Hedge Funds See Gains in China Stocks Following Central Bank Stimulus - Goldman Sachs Report
China stock picking hedge funds have achieved a 1.7% return this week, with September performance at 3.2% and year-to-date returns at 7.5%, according to a note from Goldman Sachs prime brokerage. The central bank's stimulus measures led to the largest single day buying spree since March 2021.
Investment banks have lowered their 2024 China growth forecasts, impacting hedge fund investor allocations. Despite recent struggles, hedge funds trading in the wider Asia region have shown positive returns, with a 1.1% uptick this week and year-to-date returns at 9.3%.
Analysis:
- Hedge funds trading China stocks have seen gains after the central bank's stimulus package, resulting in positive returns for investors.
- Investment banks have revised their growth forecasts for China, affecting hedge fund allocations to the region.
- Despite challenges faced by China-focused hedge funds, those trading in the wider Asia region have shown positive performance, indicating opportunities for investors to consider diversifying their portfolios.