Foreign institutions reinforce confidence in Chinese market

China's appeal to global investors continues to rise, with official data showing that by the end of 2024, the number of qualified foreign institutional investors had reached 866 – a record high that underscores the confidence of international capital in the Chinese market.

In recent months, major foreign asset managers including Fidelity International, AllianceBernstein, and Morgan Stanley Investment Management have increased capital injections into their China operations, signaling long-term optimism.

China's breakthroughs in the tech sector and the global competitiveness of its companies across multiple industries are a major draw for foreign investors, said Alan Ho, co-senior country officer for China of JP Morgan. Long-term investment funds are returning to the Chinese market, driven by corporate performance and technological advancement, Ho added.

This sentiment is echoed across sectors. Brendan Ahern, chief investment officer of KraneShares, emphasized that the rise of Chinese tech stocks is reshaping global valuation models. The government's supportive policies – from boosting domestic consumption to promoting clean energy and stabilizing the real estate sector – are injecting strong long-term momentum into the market, said the investment firm.

Foreign firms are also demonstrating commitment through deeper involvement in China's financial landscape. Guo Zhiyi, CEO of BNP Paribas Securities China, said the decision to set up a securities firm in China this year was the result of careful strategic planning. "We see this as a long-term commitment."

Wang Yan, director for Greater China Property and Casualty at Hannover Re, affirmed that multinational corporations view China as a future market worth substantial investment. "There's broad recognition of China's growth potential among multinational companies," he said.

Meanwhile, Kevin Sneader, president of Asia Pacific ex-Japan at Goldman Sachs, pointed out that there is greater optimism surrounding Chinese growth, guided by the "strength and breadth of innovation across China."