LBX(SH:603883) Sou Hu Cai Jing·2025-10-06 16:59Group 1 - The Federal Reserve's decision to lower the federal funds rate target range by 25 basis points to 4.00-4.25% in September 2025 marks the first rate cut since December 2024, triggering a key variable for international capital reallocation [1] - The depreciation of the US dollar has alleviated the pressure on the renminbi exchange rate, significantly reducing the exchange rate risk for renminbi assets, while the marginal improvement in the China-US interest rate differential has increased the relative attractiveness of Chinese bonds and stocks [3][5] - As of September 2025, the valuation of the CSI 300 index stands at a price-to-earnings ratio of 12.93, which is at the 46th percentile historically, compared to the S&P 500's 22.5 and the Nasdaq's over 40 [3] Group 2 - The Hong Kong stock market shows even more pronounced valuation advantages, with the Hang Seng Index at a price-to-earnings ratio of 10.48, significantly lower than its US counterparts and at historical lows [5] - The low interest rate environment is expected to benefit growth sectors and interest-sensitive industries, supported by a comprehensive macro policy framework that aims to stabilize market confidence and improve corporate profit expectations [5][8] - China's GDP growth rate for the first half of 2025 is reported at 5.3%, which stands out amid a global economic slowdown, with significant contributions from high-tech manufacturing and service sectors [10][12] Group 3 - The ongoing adjustment in the real estate market is counterbalanced by robust growth in infrastructure and manufacturing investments, indicating strengthening internal economic momentum [12] - The influx of international capital into Chinese assets is driven by fears of missing out on technological advancements, with significant net inflows into the Hang Seng Tech Index ETFs [12][15] - Institutional investors, both domestic and international, have been key contributors to the recent market rebound, with substantial increases in stock holdings reported [17] Group 4 - Nearly 60% of sovereign wealth funds prioritize China as an investment market, with Norway's sovereign fund increasing its allocation from 2.1% to 5.7% [19] - The global attractiveness of Chinese assets is expected to rise further due to ongoing economic development, policy optimization, and technological innovation [19]