Hedge funds record largest weekly buying spree in Chinese stocks following government stimulus

Hedge funds have made record net purchases of Chinese stocks, driven by recent government stimulus measures aimed at boosting the economy. This surge marks the largest weekly buying activity ever recorded, according to Goldman Sachs. Investors are optimistic following Beijing's announcement of interest rate cuts and reduced reserve requirements for banks. Notable figures like David Tepper and firms such as Man Group have increased their investments in Chinese equities, viewing the stimulus as a potential game changer. Despite the enthusiasm, some caution remains. BlackRock upgraded Chinese stocks but noted long-term structural challenges. Concerns about U.S.-China trade relations and geopolitical tensions also persist, leading some investors to remain skeptical.