Xinwen Lianbo: Long-Term Foreign Capital Bullish on China, Continues Increasing Investment in Hard Technology

Recently, multiple international financial institutions have released positive outlooks on the Chinese economy, raising their allocations to Chinese tech companies and accelerating their investment deployment in China. Global index compiler MSCI has officially included 19 A-share stocks into the MSCI China Index, a move that means international funds will have more convenient access to invest in these Chinese companies. The newly included companies are primarily concentrated in optical communications, computing power, and high-end manufacturing, demonstrating foreign capital’s preference for China’s “hard technology” sectors.

Since the beginning of this year, foreign capital has been steadily flowing in through various channels. To date, various types of overseas investors hold over 4 trillion yuan in circulating A-share market value, making them important participants in China’s capital market. While increasing investments in China, Morgan Stanley, Deutsche Bank, and other major international investment banks have recently raised their 2026 China GDP growth forecasts. Multiple institutions have stated that China’s core competitiveness in technological innovation globally is their strongest conviction for steadfast investment in China. At the same time, foreign financial institutions are accelerating their onshore presence in China. Recently, Morgan Stanley obtained its fourth Qualified Foreign Institutional Investor (QFII) license in China; Goldman Sachs received approval to establish a new securities company in China. These measures demonstrate the confidence of international capital in the long-term development prospects of the Chinese market.