US fund investors bought $570 million worth of shares in American funds that invest mainly in China during the past week, the highest weekly total since January, despite the country’s slowing economy and the US-China trade war, Reuters reports.
Investors are expecting the Chinese government to relax monetary and fiscal policies further in coming months to mitigate the effects of the trade war. Beijing published plans for a $14 billion urban railway plan and told local governments to accelerate infrastructure investment last week.
“They’re continuing to do more and more,” Komson Silapachai, vice president at Sage Advisory Services, told Reuters. “We just think that China has reversed course.”
Some investors are hedging against China, however, with money market funds collecting $4.2 billion during the past week.
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