Foreign Institutions Bullish on Chinese Investment Opportunities
On August 7, S&P Global Ratings released a report maintaining China's sovereign credit rating at "A+" with a "stable" outlook. In response, an official from the Ministry of Finance stated that the report highly recognizes the resilience of China's economic growth and its achievements in debt management, reflecting confidence in the country's positive economic prospects. In the long run, China's economy boasts a solid foundation, numerous advantages, strong resilience, and vast potential, with accumulating positive factors supporting high-quality development.
Meanwhile, several international institutions have expressed overweight or bullish views on Chinese assets. On August 7, Luca Paolini, Chief Strategist at Pictet Asset Management, stated in his latest market outlook: "We remain optimistic about Chinese equities and maintain an overweight position. The People's Bank of China has adopted a rare accommodative stance since the global financial crisis, emphasizing more efficient and forceful implementation of stimulus policies. The Chinese government is prepared to further ease policies to support the economy while addressing overcapacity issues plaguing various industries through 'anti-involution' measures."
At the end of July, Xiong Yi, Chief China Economist at Deutsche Bank, released a 2025 macroeconomic outlook report for China. In the report, he noted that China's economy withstood stress tests in the first half of the year, demonstrating strong resilience. Robust exports and a recovery in domestic demand further supported this resilience, while private enterprise confidence steadily rebounded. As external disruptions marginally ease, the improvement in China's competitiveness will further bolster the RMB's performance.
Xiong Yi believes service consumption is likely to outperform in the second half of the year. China is ramping up support for service consumption as a new engine for economic growth and employment, particularly in cultural tourism, elderly care, healthcare, and domestic services. Deutsche Bank Research suggests that "anti-involution" may become the theme of China's economic policies in the second half of the year, with the country vigorously promoting healthy competition across multiple industries.
Additionally, Zhu Liang, Deputy General Manager and Investment Director of AllianceBernstein Fund, believes that the overall valuation of A-shares is currently attractive, favoring dividend assets as well as areas like new quality productivity and new consumption. Li Changfeng, Market Strategist at AllianceBernstein Fund, noted that total dividends from listed companies in 2025 are expected to hit a record high. Meanwhile, the overall performance improvement trend among A-share listed companies is evident, potentially structurally addressing the long-term undervaluation of Chinese equities.
On August 7, Neuberger Berman Fund stated in its August market outlook that, from a medium-term perspective, Chinese assets remain underallocated globally while new growth drivers (advanced manufacturing, digital economy, green transformation) continue to emerge. Policymakers are rolling out sustained measures to support high-quality development in capital markets, coupled with accommodative liquidity, making A-shares increasingly attractive to foreign and long-term capital. More importantly, with the introduction of the "9.24 Policy," "anti-involution" measures constraining supply, and the gradual confirmation of corporate "earnings bottoms," the three pillars supporting medium-term market performance—earnings recovery, valuation gaps, and capital reallocation—are all showing positive trends.
