Shanghai's Pudong skyline on April 26, 2025 Photo: VCG
As China's economy shows strong upward growth momentum after authorities unveiled a fresh round of supportive policies, multiple foreign financial institutions have expressed optimism about China's capital market, with some vowing long-term development in the market amid external challenges.
Compared with other stock markets, China's stock market remains at a relatively low valuation level and still appears quite attractive, Wang Zonghao, head of China equity strategy research at UBS, said in a note sent to the Global Times on Thursday.Meanwhile, breakthroughs in China's technology sector will continue to boost market confidence in the medium to long term, with fundamental factors showing a gradual recovery trend and the overall performance of listed companies remaining relatively robust, Wang said."Over the next few quarters, foreign capital is expected to flow to China's stock market," Wang said, noting that China's core assets, including some companies in industries such as electric vehicles, artificial intelligence and pharmaceuticals, are of great attractiveness to overseas investors.According to the Global Family Office Report 2025 released by UBS, almost one-fifth of global family offices are planning to increase their exposure to the Chinese mainland over the next 12 months.On Wednesday, Morgan Stanley analysts led by chief China equity strategist Laura Wang nudged up their 12-month target for MSCI China to 78, implying 5-percent potential returns, while raising the CSI300 target to 4,000, signaling 3-percent potential returns. "We raise index targets for Chinese equities on the back of sustained structural improvement and the latest positive developments with tariffs and earnings," the analysts wrote in a note shared with the Global Times.With optimism about China's economic prospects and the long-term potential of the country's capital market, some foreign institutions have reaffirmed their development in China.Jamie Dimon, CEO of JPMorgan Chase & Co, said that his firm is committed to long-term investment in China, Bloomberg reported on Wednesday."We're a long-term investor here," he said in a Bloomberg TV interview at the lender's Global China Summit in Shanghai. "Yes, there's all these other issues causing consternation, but we have to deal with the world that we have, not the world we want, and we'll continue to grow," Dimon said.Moreover, Singapore-based real estate CapitaLand Investment (CLI) said on Wednesday that it had launched its first onshore master fund in China, backed by a total equity commitment of 5 billion yuan."Leveraging our over 30 years of experience in China and deep on-the-ground expertise, our first master fund in China demonstrates CLI's capabilities in structuring and launching a diversified suite of yuan funds tailored to domestic investors' needs," Puah Tze Shyang, CEO of CLI China, was quoted as saying in a press release.According to recent data from the China Association for Public Companies, Chinese listed companies achieved net profits of 1.49 trillion yuan ($206.73 billion) in the first quarter, a 3.55-percent increase year-on-year. A total of 4,084 companies were profitable in the first quarter, further consolidating the positive recovery trend.In order to further stabilize markets and sustain the economic recovery amid external headwinds, Chinese monetary and financial authorities have recently announced a series of fresh measures, including policy rate and reserve requirement ratio cuts.Despite the complex and volatile external environment, China's strategic direction toward high-quality economic development remains clear and firm, which, along with the increased stability and predictability of macro-policies, especially timely policy adjustments, has strengthened foreign investors' confidence in investing in China's capital market, Wu Qing, head of the China Securities Regulatory Commission, said at a press conference on May 7, vowing a firm commitment to boost high-level opening-up of the capital market."Thanks to a series of policies, we believe China's economy will continue to see a steady recovery in growth this year, backed by investment, exports or consumption, achieving the GDP growth target of about 5 percent," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times, noting that stable economic growth and policy support will bring greater investment opportunities to the capital market.
