International investors have shown growing interest in the Chinese capital market at a roadshow of Chinese listed companies in Paris thanks to flourishing strategic emerging industries and improving investment environment for foreign financial institutions in China.
On Wednesday, the Shenzhen Stock Exchange and the Shanghai Stock Exchange jointly held a roadshow in Paris, aiming to introduce 15 listed companies from the two bourses to nearly 200 European investors.
At the event, the latest development in China's strategic emerging industries, including new energy, captured the intense attention of investors.
"Their interest in Chinese assets is constantly on the rise. They repeatedly inquired about listed companies in the electric vehicle, clean energy, and intelligent manufacturing sectors. The recent regulatory changes, such as the roll out of new nine guidelines (for the capital market), have effectively contributed to improving the quality of listed companies and protecting investors. This has also boosted their confidence in investment," explained Yang Chao, head of strategy team at China Galaxy Securities.
On April 12, China issued a set of policy guidelines on strengthening regulation, forestalling risks and promoting the high-quality development of the capital market.
These nine guidelines demand a better mechanism for protecting investors' interests and encourage improvement in the quality of listed companies, noting the country should build a secure, regulated, transparent, open, dynamic and resilient capital market.
According to a recent research report by Wall Street titan Goldman Sachs, Chinese A shares have recently outperformed many developed and emerging market stocks, thanks to the resilience of the Chinese economy, robust policy support, favorable valuations of A-shares, and positive investor sentiment.
Global hedge funds have also added to their holdings of Chinese equities for several weeks, the financial institution said in a separate report.
"Included in the nine guidelines, a mechanism for increasing dividends is specifically mentioned. Investors who invest in A shares in the long term can not only obtain capital gains but also enjoy a steady stream of cash inflows, and this is helpful in enhancing the willingness of foreign investment," said Jiang Xianwei, global market strategist at J.P. Morgan Asset Management.
"The release of the revised nine guidelines has elevated standards for the stock market in terms of generating returns for investors. Overall, we believe that the entire stock market is also shifting toward a healthier direction," added Zhou Wenqun, equity portfolio manager of Fidelity International.
Global financial institutions keen on China's capital market
Global financial institutions keen on China's capital market
