BNY: Institutional Flows Support Buy-the-Dip in Chinese Equities

BNY analyst Geoff Yu observes that institutional investors are steadily adding to their Chinese equity positions, even as the market faces a prolonged downturn. The Hong Kong China Enterprises Index is in bear market territory, with Chinese equities down 15–16% year-to-date.

This sustained institutional buying suggests confidence in a rebound, despite the broader negative price action. Yu frames the current environment as one where flows favor a buy-the-dip approach, rather than a full retreat from the asset class.

While retail sentiment remains cautious, the institutional flow data provides a contrarian signal that may cushion further downside risk in Chinese stocks.