Francis Chung (叢川普), Chairman of independent MPF specialist research group MPF Ratings, said that the strong demand for HK/China and Asian equities, and the rotation out of US equities, reflects strong confidence in equity markets but also concerns over valuations, “Three global factors appear to be supporting equity markets. The vaccine rollout, stimulus packages and extended low interest rates create a perfect environment for equities to do well, however despite the attractive macro landscape, valuations are always something to consider and this could in part explain why there has been a surprising rotation away from US equities, which has seen its first net-outflow since October 2018. MPF members appear to have taken profits from US equities after an extended run up in that market.”