A growing number of global financial institutions have voiced confidence in China's market outlook, with several investment banks maintaining overweight calls on Chinese equities and foreign funds stepping up purchases.
Goldman Sachs this month reiterated its "overweight" rating on Chinese stocks, while Standard Chartered Bank, in its Global Market Outlook H2 2025, also kept an overweight stance.
"There are many factors that support our overweight allocation to China equities, including external as well as domestic forces. Externally anticipating that China would be highly vulnerable to the trade tensions, but as it turned out China has managed the situation quite well. Domestically, we are seeing more policy support to stabilize the economic growth conditions, including the recent announcement of new birth subsidies. So, as we go into the fourth quarter, we believe there should be a more policy support," said Raymond Cheng, chief investment officer of North Asia at Standard Chartered Bank.
Meanwhile, international investment banks are also increasing their holdings in China's stock market.
Goldman Sachs said hedge funds had bought Chinese equities at the fastest pace in seven weeks, making China the largest destination for net hedge fund inflows globally in August.
Data from China's State Administration of Foreign Exchange showed that overseas investors increased their holdings of onshore Chinese stocks and funds by 10.1 billion U.S. dollars in the first half of 2025.
Notably, net purchases accelerated in May and June to 18.8 billion dollars.
"As of last week, the total market value of A-shares held by foreign institutions stood at about 2.5 trillion yuan, up 8 percent from 2.31 trillion yuan at the end of last year. We also saw continued net inflows of northbound capital last week," said Zhu Bingqian, chief market strategist of Neuberger Berman (China).
Looking ahead, foreign financial institutions remain largely upbeat about the fourth quarter.
Standard and Poor Global Ratings recently affirmed China's sovereign credit rating at A+ with a stable outlook.
Analysts say the consensus among foreign investors is that China's economy has a solid foundation, multiple advantages and strong resilience, with growing drivers that support high-quality development.
Foreign capital bets big on Chinese assets amid promising market outlook
A former television host from Taiwan, Zhai Xuan, has made a pivotal decision to leave mainstream broadcasting in order to create content that provides a better understanding of the Chinese mainland and cross-strait relations.
Zhai, a seasoned television host with over a decade of experience in Taiwan's media landscape, recently addressed an audience at an event in Beijing, where she revealed her complete transition into independent online media.
In her remarks, she articulated her aspiration to bridge what she perceives as a significant information gap between audiences on both sides of the Strait, highlighting her commitment to fostering a deeper understanding and connection through her new endeavors.
"I was really surprised by all the fake news. There were stories saying people on the mainland can't afford tea eggs or that they live in mud houses and in Taiwan, this was the main information many people received," said Zhai.
Zhai said she initially began producing online videos to challenge such perceptions while continuing her work as a television host.
In April 2025, she travelled to the mainland with her father to fulfill her late grandfather's wish to return to his hometown. The trip, which reunited family members separated since 1949, was recorded in a video series titled "Journey to Find Our Roots", drawing attention from viewers in both Taiwan and the mainland.
"Many people in Taiwan told me that after watching, they wanted to apply for a mainland travel permit immediately and go looking for their relatives. Some had long forgotten these things, but after seeing my story, they began thinking about their hometowns and family members they had never met and decided to search for their roots," Zhai shared her story at the event.
By mid-2025, Zhai said she began to feel increasing pressure amid rising political tensions and a tightening atmosphere around cross-Strait exchanges in Taiwan.
After more than 12 years in the industry, Zhai resigned from her position, believing it was the right thing to do.
"At that moment, I felt this was a major issue，not just for me, but for Chinese people on both sides of the Strait. If I backed down then, I wouldn’t be standing on the right side," said Zhai.
Since leaving television, Zhai has broadened her online programming to encompass a range of daily-life topics, including practical guidance on applying for a mainland travel permit and using commonly employed mobile applications, in addition to content that delves into historical memory and cultural connections across the Strait.
As the debate over cross-Strait relations continues in Taiwan, Zhai said she remains committed to her current path.
Former Taiwan TV host bridges cross-Strait divide via online media
