券商中国·2025-07-21 23:19Core Viewpoint - Foreign capital is re-evaluating Chinese assets, with a significant shift towards increased investment in China's innovative sectors, particularly technology [1][3]. Group 1: Foreign Capital Trends - Approximately 60% of Middle Eastern sovereign wealth funds plan to increase their allocation to Chinese assets over the next five years, focusing on technology-driven industries [2][3]. - The survey covered 83 sovereign wealth funds and 58 central banks, managing a total of $27 trillion (approximately 194 trillion yuan) in assets [4]. - In addition to the Middle East, 88% of sovereign funds in the Asia-Pacific and 80% in Africa indicated plans to invest more in China, with about 73% of North American funds also showing a positive attitude towards Chinese investments [5]. Group 2: Investment Drivers - Key factors driving sovereign funds to increase their allocation to Chinese assets include good returns from the Chinese market (71%), diversification of investment portfolios (63%), and improved access for foreign capital (45%) [6]. - Respondents generally recognize the supportive policies introduced by China, which are seen as beneficial for the development of innovative technologies [7]. Group 3: Attractive Investment Areas - The most attractive investment sectors in China include digital technology and software, advanced manufacturing and automation, clean energy and green technology, as well as healthcare and biotechnology [9]. - A Middle Eastern sovereign fund representative noted that China has no real competitors in the clean energy and green technology sectors, predicting that China will dominate the solar, wind, electric vehicle, and battery markets in the coming decades [10]. Group 4: Market Performance - On July 21, the A-share market saw significant gains, with the Shanghai Composite Index and the ChiNext Index both reaching new highs for the year, closing with increases of 0.72% and 0.87%, respectively [11]. - The Hong Kong market also performed well, with the Hang Seng Index reaching 25,000 points, the highest since February 2022, and a year-to-date increase of 24.6% [13]. Group 5: Future Market Outlook - Analysts suggest that the current market phase is characterized by "asymmetrical risk and reward," with potential upward movement if certain triggers, such as policy announcements, occur [12]. - The technology sector in the Hong Kong market is seen as undervalued and poised for recovery, with the Hang Seng Technology Index's dynamic PE at 15.7 times, below the historical average of 23.8 times [14][15].