As China's economy demonstrates a robust growth trajectory following the introduction of new supportive policies by authorities, a number of foreign financial institutions have conveyed positive sentiments regarding the outlook for China’s capital market.

Many of these firms are committed to long-term investment despite facing external challenges.

Analysts indicate that China's stock market is currently valued at relatively low levels compared to other major markets, which presents an attractive opportunity for investors.

Wang Zonghao, the head of China equity strategy at UBS, noted that ongoing advancements in China's technology sector are expected to further enhance market confidence over the medium to long term.

He highlighted a gradual recovery trend in fundamental economic factors, with the overall performance of publicly listed companies remaining relatively strong.

Wang projected an influx of foreign capital into China’s stock market over the upcoming quarters, particularly targeting core assets in sectors such as electric vehicles, artificial intelligence, and pharmaceuticals, which are gaining interest from overseas investors.

Further reinforcing this sentiment, the Global Family Office Report 2025 published by UBS revealed that nearly 20% of global family offices plan to increase their investments in China in the next year.

On May 10, analysts from Morgan Stanley, led by chief China equity strategist Laura Wang, raised their 12-month target for the MSCI China index to 78, suggesting a potential return of 5%, while adjusting the CSI300 target to 4,000, indicating a projected 3% return.

Their revisions were attributed to sustained structural improvements and favorable developments concerning tariffs and earnings.

Reiterating their commitment to China, Jamie Dimon, CEO of JPMorgan Chase & Co, stated during an interview at the bank's Global China Summit in Shanghai that the firm remains a long-term investor in the country, despite existing geopolitical challenges.

In a significant move, Singapore-based CapitaLand Investment (CLI) announced the launch of its first onshore master fund in China, backed by total equity of 5 billion yuan ($706 million).

Puah Tze Shyang, CEO of CLI China, emphasized their extensive experience in China and the goal to establish a diversified range of yuan funds tailored to domestic investor needs.

Recent data from the China Association for Public Companies revealed that Chinese listed companies generated net profits of 1.49 trillion yuan ($206.73 billion) in the first quarter of 2025, marking a 3.55% increase from the same period last year.

Approximately 4,084 companies reported profits during this timeframe, indicating a continued positive recovery trend in the market.

In response to external economic pressures, Chinese monetary and financial authorities have implemented a series of measures aimed at stabilizing markets and fostering economic recovery, including cuts to policy rates and the reserve requirement ratio.

Wu Qing, head of the China Securities Regulatory Commission, affirmed the government’s commitment to high-quality economic development and emphasized the importance of creating a stable and predictable policy environment to boost foreign investor confidence.

Yang Delong, chief economist at Shenzhen-based First Seafront Fund, stated that ongoing policies are expected to sustain steady economic growth in China this year, supporting the GDP growth target of approximately 5%.

Economic stability and policy backing are anticipated to create greater investment opportunities within China’s capital market.