According to data on the iShares (Anshun) website, which is part of BlackRock, as of Friday (October 11th), the net assets of its New York Stock Exchange (NYSE)-listed fund - iShares China Large-Cap ETF (ticker symbol: FXI) - have reached $10.86 billion.

This marks the first time that the scale of a Chinese stock ETF listed in the United States has exceeded $10 billion. It is understood that FXI, which was established 20 years ago, tracks the FTSE China 50 Index, covering the 50 largest market capitalization and most liquid stocks listed on the Hong Kong stock market.

The largest weighted stock in FXI is Meituan, accounting for 10.69%, followed by Alibaba, Tencent, China Construction Bank, and JD.com. The top ten also include Xiaomi, BYD, Ping An Insurance, Bank of China, and Industrial and Commercial Bank of China.

Data shows that on Thursday (October 9th), the net inflow of funds into FXI reached $1.6 billion, setting a record for the daily net inflow. As of the close on Friday, FXI was reported at $33.38, up 5% this month following a 20% increase last month.

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Last Monday, FXI once reached $37.50, the highest level since November 2021.

In addition to FXI, ETFs tracking Chinese assets, such as the 3x Leveraged FTSE China ETF - Direxion (YINN) and the 2x Leveraged CSI China Internet ETF - Direxion (CWEB), have also shown a significant increase in recent times.

Overseas institutions emphasize that the valuation advantage remains unchanged.

Last month, a series of policies to support high-quality economic development in China were intensively introduced, boosting market confidence and improving investor expectations. On Saturday, Finance Minister Lan Fo'an stated that the central finance still has a considerable debt capacity and room for increasing the deficit.

Steven Schoenfeld, CEO of New York's MarketVector Indexes, commented, "To some extent, the stimulus measures have worked. The market has shown this."

Brendan Ahern, Chief Investment Officer of KraneShares, the provider of the China Overseas Internet ETF "KWEB," stated that for a long time, Chinese stocks have been underrepresented in global indices, and their stock valuations are lower compared to similar global stocks."The Federal Reserve is cutting interest rates, and a recession in the U.S. economy may be on the horizon. So why not allocate a portion of profits to invest in China, which offers a relatively high cost-performance ratio?" Ahern said, "There are tremendous opportunities embedded in valuations."

Schoenfeld believes that China's representation in major stock indices still underestimates the country's enormous economic potential. "Given the strong rebound after the policy announcement, the pullback last Wednesday was not surprising. In fact, it just means that investors can now grab Chinese stocks at a slightly discounted price."

Bank of America strategist Michael Hartnett also recommends buying Chinese stocks on dips. The team said that as forecasts for economic growth are raised, and bond yields climb, it is expected that asset allocation to China will increase.

Goldman Sachs strategists wrote in a report that the recent rebound in emerging market equities was mainly driven by the surge of Chinese stocks from their lows, with China's performance relative to other emerging markets reaching the highest level in 25 years. "We expect further gains in emerging market equities."