Chinese savers want to invest in US stocks. Now there’s an easier way.
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Chinese savers are finding easier ways to invest in U.S.
- ✓The Pictet Strategic Income fund grew to $5.1 billion this year as mainland investors moved money from low-interest bank deposits.
- ✓Beijing now encourages using legal channels for overseas investing while tightening rules on unlicensed offshore trading platforms.
Story at a Glance
- Category
- MARKET
- Reported By
- Livemint
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
The result is an unusual compromise: Beijing is tightening enforcement around offshore trading in some places while widening regulated channels that give Chinese investors exposure to U.S. stocks, Treasuries, gold and other global assets.
Few funds illustrate the shift better than Pictet Strategic Income. The Hong Kong-domiciled fund has grown to $5.1 billion from $1.6 billion at the start of this year. Roughly 60% of its assets now come from mainland Chinese retail investors through the Mainland-Hong Kong Mutual Recognition of Funds program.
In the first half alone, the fund attracted HK$16.3 billion ($2.1 billion), in net mainland inflows, the most among 34 funds tracked by Morningstar. An August portfolio update showed top holdings including U.S. Treasuries and gold, as well as Amazon.com, Alphabet and Nvidia. The fund returned 17% through August after gaining 18% last year.
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