Cai Jing Wang·2025-10-24 02:53Group 1 - Foreign institutions are optimistic about the Chinese capital market, with firms like Goldman Sachs, JPMorgan, and UBS predicting a sustained upward trend in the stock market [1] - As of October 23, 2023, 748 foreign institutions have conducted 5,888 investigations into A-share companies, indicating strong interest in sectors like new energy and high-end medical technology [1] - QFII has shown a tendency to increase holdings in quality A-share companies, reflecting a long-term investment commitment to Chinese assets [1] Group 2 - Corporate profit growth is accelerating, driven by factors such as AI's impact on profitability, "anti-involution" measures, and increased competitiveness from companies expanding overseas, leading to an estimated 12% growth in earnings per share [2] - The potential for valuation improvement is a significant reason for foreign institutions' positive outlook on Chinese assets, with sectors like healthcare and finance currently trading at reasonable valuations compared to historical medians [2] - The Chinese stock market is seen as having a long-term valuation discount compared to global markets, with favorable conditions from U.S. Federal Reserve policies [2] Group 3 - There is a consensus among foreign institutions to focus on technology and "anti-involution" sectors for investment [3] - The recent pullback in large tech stocks has alleviated some risks associated with crowded positions, and the overall leverage level in the market remains manageable [3] - High-dividend quality assets are gaining attention, as regulatory efforts are encouraging companies to enhance shareholder returns through buybacks and increased dividends [3]