The Hang Seng Index has surged 33% in 21 days following China’s economic stimulus package, positively impacting the Nippon India Hang Seng ETF, which is trading at a 5% premium. This ETF has delivered substantial returns, raising discussions on the potential of Systematic Investment Plans (SIPs) in light of recent market shifts.

The recent economic stimulus measures instituted by China have catalyzed a remarkable resurgence in the Hang Seng Index, which experienced a notable increase of approximately 33% over a span of just 21 days. The Nippon India Hang Seng ETF, being the sole fund in India that tracks this particular index, has garnered significant attention amidst this rally.

The landscape of the Asian stock markets has been dramatically altered following China’s introduction of a substantial stimulus package aimed at revitalizing its economy. This influx of capital has not only improved liquidity in Chinese equities but has also elicited a positive investor response, as evident from the inflows into equities and funds. The Hang Seng Index had initiated a rebound on September 11, 2024, climbing from a low of 17,108.71 points to 22,736.87 points by October 4, 2024. In contrast to its previous performance, wherein it registered negative annualized returns, the recent surge has positioned it favorably for potential investors.

In summary, the stimulus measures implemented by China have revitalized both the Hang Seng Index and the associated Nippon India Hang Seng ETF, leading to significant gains for investors in this market segment. Despite the recent bullish trend, experts advise caution, noting external factors that may affect the sustained performance of such ETFs. As investors consider their options, it is paramount to weigh the long-term prospects of domestic funds against the tentative nature of the Chinese market’s recovery.

Original Source: www.livemint.com

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