Core Insights - China has become a focal point for global investors, with a consensus that the market is worth investing in, shifting the focus to strategies for smart allocation [1] - The year 2026 is anticipated to be a critical juncture for overseas capital reassessing and reallocating to Chinese assets, driven by factors such as declining interest rates and the AI revolution [1][6] Investment Themes - Three main investment themes favored by foreign capital include technological innovation, overseas industrial chains, and valuation recovery [2] - AI is highlighted as a significant theme, with Chinese tech giants expected to perform well due to breakthroughs in AI, a robust domestic market, and supportive policies [2][8] - The shift of Chinese companies from merely exporting products to establishing overseas production and supply chains is seen as a flexible investment opportunity [3] Valuation Recovery - Many A-share companies related to consumption and real estate are currently undervalued compared to historical averages, presenting potential for valuation recovery if these sectors stabilize [3][6] - The "anti-involution" policies are expected to positively impact certain industries by improving product pricing and profitability [4] Positive Signals - Since 2025, there has been a noticeable acceleration in foreign capital reassessing Chinese assets, with positive signals emerging from policy, corporate performance, and funding [6] - Institutional investors have shown increased interest in Chinese equities, with significant inflows into A-shares and Hong Kong stocks [6][7] Market Outlook - Despite recent market fluctuations, many foreign institutions believe the long-term bullish trend for A-shares remains intact, viewing current volatility as an opportunity for strategic positioning [7] - The ongoing AI revolution is expected to continue driving growth opportunities in related sectors, supported by a likely shift towards looser monetary policy from the Federal Reserve [7][8]

Core Insights - The 2025 Global Investor Conference, hosted by the Shenzhen Stock Exchange, gathered nearly 400 representatives from 19 countries and regions to discuss new investment opportunities in Chinese assets and capital markets [1] - Global investor confidence in the Chinese market is increasing, with foreign institutions gradually raising their allocation to Chinese assets [1] - The Chinese government has announced a series of incremental policies that have stabilized investor and market confidence, particularly among long-term capital from overseas investors [1] Group 1 - The conference focused on promoting deeper exploration of investment opportunities in China [1] - Future Asset Global Investment's Chief Investment Officer indicated limited downside risk for corporate earnings, suggesting a market price revaluation is on the horizon [1] - Morgan Stanley's Managing Director highlighted the high enthusiasm of foreign investors, especially long-term capital, towards the Chinese market [1]