Global investors maintain positive outlook on China’s economy, vast market: analyst

⁠⁠⁠⁠⁠⁠⁠Global investors are increasingly optimistic about the long-term value of Chinese assets due to their confidence in China's economy and enormous market potential, according to a financial expert.

Recently, multiple foreign financial institutions have released reports expressing their positive outlook on Chinese assets. Goldman Sachs raised its target price for Chinese stocks last month, estimating that the adoption of artificial intelligence (AI) could boost earnings growth and potentially bring in 200 billion U.S. dollars of inflows. Meanwhile, Citigroup and HSBC have upgraded their ratings for Chinese stocks from "Neutral" to "Overweight", reflecting growing investor confidence.

Since the start of the year, China's innovations in cutting-edge sectors like robotics, AI, and game development have garnered global attention. These advancements highlight China's growing influence in technology and its potential to lead in emerging industries.

China's economic data further supports this optimism. Recent reports show the country's economy is accelerating. In February, the Small and Medium Enterprises Development Index reached its highest level in nearly four years, while the purchasing manager index (PMI) of the country's manufacturing sector increased by 1.1 percentage points, signaling a strong rally in the manufacturing sector.

Additionally, China has made significant strides in opening up its service sector to foreign investment. New pilot programs have been launched in areas like value-added telecommunications and healthcare, further attracting international attention.

Duan Bing, an analyst of China's technology and telecommunications industries at the global financial services group Nomura, emphasized that China's large tech user base and their high level of acceptance of new technologies are key drivers behind the country's technological growth.

According to Duan, this dynamic is one of the primary reasons institutional investors have increased their focus on China's technology-related assets.

"China's technology sector boasts a favorable environment for growth. The country also has a vast number of enterprises and consumers who are highly receptive to new technologies and applications. All this serves as a continuous driving force for innovation. As a result, we believe this is why global institutional investors are increasingly interested in Chinese assets, particularly in technology-related sectors," Duan shared.

The inclusion of stabilizing the housing and stock markets in this year's Government Work Report has introduced new drivers for the long-term stability of Chinese assets, further boosting global investor confidence.

Additionally, the policy insights from the just-concluded annual sessions of China's top legislature and advisory body, which emphasize developing more dynamic emerging and future industries, have highlighted China's growth potential, drawing more interest from foreign institutions.

Global investors maintain positive outlook on China’s economy, vast market: analyst

China's summer grain procurement season is set to begin later this month, with the expectation of buying about 100 million tons of wheat during the peak period, roughly the same amount as last year, a national food reserves official said on Thursday.

Summer crops account for more than 20 percent of the country's annual grain output, over 90 percent of which is winter wheat. The peak purchasing season runs from late May to the end of September. This year, the summer grain harvest is expected to start about one week later than usual, with early batches already hitting the market in Hubei and Sichuan provinces.

"Preliminary analysis suggests that wheat purchases during the peak season will reach around 100 million tons, which is about 70 percent of total [wheat] output, basically unchanged from last year," said Luo Shouquan, director of the Food Reserves Department at the National Food and Strategic Reserves Administration.

Luo said authorities will step up market analysis and forecasting, and adjust policies as needed. He stressed efforts to facilitate market-oriented purchases, encouraging various buyers to enter the market, and calling on leading state-owned enterprises to take the lead in procurement to boost market confidence.

"A total of 110 million tons of storage capacity has been prepared across the country by far, enough to meet farmers' needs. We will strengthen market monitoring, activate the minimum purchase price mechanism in eligible regions in a timely manner, and coordinate both offline and online channels to ensure orderly purchases and keep the grain market stable," said the official.

China expects some 100 mln tons of wheat in summer procurement