Zhong Guo Zheng Quan Bao·2025-11-19 20:13Core Viewpoint - Multiple foreign institutions are optimistic about the long-term allocation value of the Chinese stock market, with firms like UBS and Morgan Stanley raising their target index levels for 2026 [1][2] Group 1: Target Index Adjustments - Morgan Stanley has slightly raised its target for the CSI 300 index to 4,840 points by December 2026, citing moderate profit growth and stable valuations [1] - UBS has set a target of 100 points for the MSCI China Index by the end of 2026, indicating potential upside from current levels [2] Group 2: Investment Preferences - The technology sector remains a primary investment focus, with UBS and Morgan Stanley recommending overweight positions in high-quality internet and technology stocks [2] - High-dividend assets are also favored, particularly quality state-owned enterprises, due to their stable cash flows and policy support [2] Group 3: Foreign Capital Inflows - There is a noticeable trend of foreign institutions increasing their allocation to Chinese assets, with UBS reporting a slight increase in Chinese positions across various fund types in Q3 [2][3] - Over 1,300 instances of foreign institutional research on A-share companies have been recorded since the beginning of Q4 [2] Group 4: QFII System Enhancements - The QFII system is expected to continue improving, enhancing the convenience of cross-border investments, with recent measures aimed at optimizing access and management [3][4] - The China Securities Regulatory Commission (CSRC) is working on enhancing the legal framework for foreign investment, aiming for a transparent and comprehensive system [4]