Our View on Chinese Assets: April 2026

Key Takeaways

• CRRAI rose to -0.08 in March, nearing neutral level.
• Foreign A‑share sentiment index held at 0.51, above neutral.
• Baiguan Pro favors A‑shares for domestic insulation and sector exposure.
• Hong Kong asset exposure is being increased despite A‑share preference.
• Household leverage and credit component drives risk appetite recovery.

Pulse Analysis

Baiguan Pro’s monthly briefing blends macroeconomic indicators with its proprietary China Resident Risk Appetite Index (CRRAI) to gauge the pulse of Chinese households. The March reading of -0.08 marks a steady climb from February’s -0.17, indicating that consumers are increasingly comfortable taking on financial risk. By weighting factors such as liquidity spreads, mortgage growth, and employment data, the CRRAI offers a granular view of domestic confidence that many investors overlook when assessing China’s equity landscape.

At the same time, foreign institutional sentiment toward mainland A‑shares has steadied above the neutral 0.50 mark, ending April at 0.51. This modest but persistent optimism reflects a broader stabilization after the volatility of late 2025, driven by improved policy signals and a more predictable macro backdrop. Baiguan highlights three reasons to favor A‑shares: the unique national team floor mechanism, greater insulation from global risk‑off moves, and a sector mix rich in AI, tech supply chain, and heavy industry—areas aligned with current thematic bets on China’s growth trajectory.

For investors, the dual signals of rising domestic risk appetite and stable foreign confidence create a compelling case for re‑evaluating China exposure. While Baiguan remains bullish on A‑shares, its incremental tilt toward Hong Kong‑listed assets signals a diversification strategy that hedges against potential regulatory or geopolitical shocks. Portfolio managers should monitor the CRRAI’s trajectory and the foreign sentiment index as leading indicators of capital flow trends, balancing the upside of mainland exposure with the liquidity advantages of Hong Kong markets.