Global funds have started buying up shares listed on the stock exchanges of mainland (excluding Hong Kong and Macau) China. The interest in the securities has grown as the country is lifting anti-commodity restrictions and taking measures to stimulate economic growth, Bloomberg writes.

Foreign investors only on Friday, January 13, invested $2 billion in shares of mainland Chinese companies. The largest one-day inflow of funds for the last two months supported the CSI 300 index, which takes into account shares of the largest companies listed on the Shanghai and Shenzhen stock exchanges. At the end of trading on January 13, the index rose by 1.41% to reach 4074.38 points.

Since the end of October, foreign investors have increased their assets in China by $23.7 billion. From its low, reached on October 31, the CSI 300 index rose by more than 16%. At the same time, the Hang Seng China Enterprise Index (CEI), which tracks the dynamics of shares of mainland Chinese companies with a listing in Hong Kong, jumped by almost 50%.

Bloomberg estimates that the forward P/E multiple for the CSI index now stands at 11.7, below the five-year average of 12.4. At the same time, the consensus forecast for corporate earnings has started to rise, making the stock even cheaper when evaluating this multiple.