Big Chinese deals are luring back long-term investors

The return of such buy-and-hold investors lays the foundations for stable and sustainable gains in Chinese stocks

- Bloomberg

Global long-term investors are placing billions of dollars worth of orders in Chinese deals after years of largely shunning them. In the past week in Hong Kong, deep-pocketed firms known as "long-only" investors—such as mutual funds—have bought shares in electric-car giant BYD Co. and bubble-tea maker Mixue Group, as well as Baidu Inc. bonds exchangeable into Trip.com Group Ltd stock, according to people familiar with the matter.

It's a significant development because the return of such buy-and-hold investors is seen as crucial to lay the foundations for stable and sustainable gains in Chinese stocks. Long-term investors had stayed away from Chinese stocks over the past few years amid a prolonged market slump.