As China’s tech companies achieve significant breakthroughs in fields like artificial intelligence, foreign investment institutions are increasingly focusing on the Chinese market. Recently, Citigroup upgraded its rating on Chinese stocks to “buy,” citing the strength of China’s tech industry and describing the Chinese stock market as “highly attractive.” This reflects a broader trend among foreign institutions, such as Goldman Sachs, Fidelity International, Morgan Stanley, and HSBC, which have expressed optimism about Chinese stocks this year.
Goldman Sachs reports that the Chinese government has signaled a commitment to stable growth and low tolerance for systemic risk, implementing specific measures to support the stock market. This is crucial for anchoring growth expectations and controlling policy risk premiums, enhancing the return prospects for Chinese stocks. Citigroup’s Global Macro Research head, Dirk Willer, highlighted the appeal of Chinese stocks due to breakthroughs in AI technology by companies like DeepSeek, government support for the tech sector, and low valuations.
Goldman Sachs also noted that the Chinese stock market had one of its strongest starts to the year, while U.S. stocks experienced recent weakness and volatility. This has led more foreign investors to consider increasing their holdings in Chinese stocks. Fidelity International, Morgan Stanley, and HSBC have also expressed positive outlooks. Fidelity’s fund manager, Huang Huiyu, emphasized China’s attractive valuations, driven by tech innovation and supportive policies. Morgan Stanley predicts continued global interest in Chinese assets, while HSBC has upgraded its view on Chinese and Asian emerging market stocks.
Chinese tech stocks are a focal point for foreign investors. The AI-driven stock market rally, led by tech stocks, has raised expectations for productivity improvements through AI system upgrades. JPMorgan forecasts a sustained revaluation of Chinese tech stocks, with an average annual return rate of 7.8% over the next 10-15 years. HSBC is optimistic about sectors like AI, e-commerce, software, and semiconductors.
Foreign institutions are not just optimistic but are actively investing in Chinese tech stocks. Companies like Montage Technology and SmartSens have attracted attention from foreign investors for their advancements in data processing, AI, and CMOS image sensor technology.
China’s supportive policies for capital markets and tech innovation have bolstered foreign confidence. The China Securities Regulatory Commission has introduced various policies to support tech enterprises, resulting in significant breakthroughs. This has improved the capital market’s ecosystem, enhancing foreign investment confidence.
