Morgan Stanley: Hedge funds re-enter Chinese stock market due to optimistic sentiment from trade negotiations

ChainCatcher news, Morgan Stanley stated that with hopes for progress in the China-U.S. trade negotiations, hedge funds increased their bullish bets on the Chinese stock market last week, especially American hedge funds.

In a report released last Friday, Morgan Stanley mentioned that after seeing encouraging signs that a trade agreement might be reached between China and the U.S., American hedge funds "reinvested" in China, buying stocks traded on U.S. exchanges and those traded on the A-share market.

The bank noted that, in contrast, hedge funds reduced their positions in most Asian regions led by Thailand, Hong Kong, India, and Australia.