AI VS Tariffs: The "Seesaw Battle" in the Post-Holiday Market?
Soochow Securities analyzed foreign capital's attitude towards Chinese assets and observed the performance of FXI and KWEB ETFs. During the Spring Festival holiday, although the FXI ETF rose, there was a net outflow of funds, with foreign capital mainly engaging in short-term speculation through derivative instruments. In contrast, the KWEB ETF attracted a significant amount of funds during the same period, with a net inflow on January 29 reaching a new high. This structural preference may influence market performance after the holiday, particularly the technology sector, which may outperform the overall market
Dongxing Securities Co., Ltd.:
From a micro perspective, what is the attitude of foreign capital towards Chinese assets? We selected FXI (China Large Cap ETF) and KWEB (KraneShares CSI China Internet ETF) to observe the volume and price performance of both since January.
During this year's Spring Festival holiday (from January 27 to 31), although the FXI represented large-cap index ETF rose, the corresponding ETF saw a net outflow of funds, indicating that overseas investments may still primarily engage in short-term sentiment and rebound through derivatives such as options and futures.
In contrast, during the same period, the KWEB represented China Internet index indeed experienced a wave of "capital inflow," with a single-day net inflow on January 29 reaching a new high since October 3 of last year.
This structural preference exhibited by foreign capital towards Chinese assets is likely to "reflect" after the holiday. For example, after the Hong Kong stock market opens on February 3, the performance of the Hang Seng Tech Index may outperform the Hang Seng Index, and the negative impact of tariffs on the tech sector may also weaken, as Deepseek itself is the best example of a "counterattack" against the blockade.
