China's economy is resilient and attractive, and now it is attracting Middle Eastern "tycoons" to accelerate their layout. Recently, E Fund** signed a memorandum of cooperation with Saudi asset management giant Riyadh Capital, which has become the latest case of Middle Eastern capital entering China**. Behind this, Middle East funds are optimistic about the potential of the Chinese market, and it is also a recognition of the strength of China's public offering investment and research.
It is reported that this cooperation will carry out in-depth exchanges and cooperation in the field of investment, and explore cooperation opportunities in different markets and different asset classes. Abdullah Alshwer, CEO of Riyadh Capital in Saudi Arabia, said that this cooperation will expand more abundant investment opportunities for Saudi customers in the global market, and provide a wider range of channel coverage and a more comprehensive product layout in Asia.
Middle Eastern capital is taking a growing interest in the Chinese market. In addition to working with Chinese companies on products and customer channels, Middle Eastern institutions have also begun to increase their investment in Chinese assets. Since the beginning of this year, listed companies such as Rongsheng Petrochemical, Kingdee International, and Weilai have received strategic investment or equity acquisition from Middle Eastern institutions. At the same time, Abu Dhabi Investment Authority, Oman National Reserves** and other Middle Eastern QFII institutions have also frequently appeared in the research list of A-share listed companies.
According to the research report of Industrial **, the proportion of investment in China's ** assets by Middle Eastern investment institutions is increasing rapidly. In the case of the Abu Dhabi Investment Authority, the proportion of its investment in Chinese assets has increased from 4.0% at the end of 20195% rose to 22 in the first quarter of 20239%。This means that the flow of funds from the Middle East into China is accelerating, bringing new capital to the domestic market.
For the public offering**, the addition of Middle East capital will undoubtedly enhance its ability to sweep goods. Industry insiders believe that the huge capital scale of relevant institutions in the Middle East and local high-net-worth customers will bring business imagination to the public offering and enhance its voice in the market to a certain extent. At the same time, it will also promote the international development process of the public offering industry.
According to a research report released by CITIC**, the "petroyuan" is expected to gradually return to China's capital market, and it is estimated that it may gradually bring about 20 billion yuan of annual funds to A-shares and H-shares. This will bring new incremental capital to the secondary market and is expected to expand gradually in the future. For investors, this means more investment opportunities and broader market prospects.
In short, the acceleration of Middle Eastern capital into China** has become an irreversible trend. With the sustained and steady development of China's economy and the in-depth promotion of reform, it is believed that more Middle Eastern "tyrants" will join the ranks of China's top performers in the future and share the dividends of China's economic development.
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