中国股票，大利好！外资，爆买！

Core Viewpoint - Foreign capital continues to be optimistic about Chinese assets, with several foreign institutions projecting a positive outlook for Chinese stocks by 2026, expecting A-share earnings growth to rise from 6% this year to 8% in 2026 [2][4]. Group 1: Market Outlook - UBS analyst Meng Lei forecasts that the nominal GDP growth and narrowing PPI decline will boost corporate revenue growth, leading to an expected increase in A-share earnings growth [4]. - Morgan Stanley has raised its target for the CSI 300 index to 4840 points for December 2026, citing stable valuations and moderate earnings growth as key factors [7]. - The International Financial Association reported that foreign capital inflow into the Chinese stock market reached $50.6 billion in the first ten months of 2025, significantly surpassing the total of $11.4 billion for 2024, indicating a more than threefold increase [6]. Group 2: Investment Themes - Key investment themes for 2026 include technological self-reliance, consumer spending driven by corporate profit acceleration, and the ongoing "anti-involution" movement [5]. - Growth style is expected to outperform value style due to a positive mid-term market outlook, while cyclical stocks may outperform defensive stocks as PPI declines and industrial profits rise [5]. Group 3: Capital Flows - Recent data shows significant inflows from both domestic and foreign investors into the Chinese stock market, with foreign capital inflows of $2.257 billion and domestic inflows of $3.041 billion in the past week [6]. - Morgan Stanley's chief equity strategist noted positive feedback from foreign investors regarding the Chinese stock market, reinforcing the expectation of continued net inflows in the coming year [6]. Group 4: Sector Preferences - The UBS global strategy team anticipates that global tech stocks will continue to rise in 2026, with a focus on high-quality internet and tech leaders benefiting from digital economy growth [7]. - Tactical preferences lean towards sectors benefiting from China's innovation, ample market liquidity, and narrowing PPI declines [5].