Hedge funds have shifted their investment strategies, turning bullish on U.S. stocks and increasing their holdings in Chinese markets. Goldman Sachs reported that hedge funds made their largest net purchase of Chinese stocks in four months last week, driven by long positions. This change comes as hedge funds moved away from a bearish stance following stronger-than-expected earnings reports in the U.S. Additionally, Chinese investors have significantly contributed to a rally in Hong Kong shares, injecting nearly $19.3 billion into the market this year, which is over seven times the amount invested during the same period in 2024. The enthusiasm for Hong Kong stocks reflects a broader trend of global investors reassessing their positions in Chinese hedge funds after previous withdrawals over the past two years.