Chinese stocks closed lower on Thursday, with the benchmark Shanghai Composite Index down 0.1 percent to 4,129.10 points.
The Shenzhen Component Index closed 0.63 percent lower at 14,374.87 points.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.96 percent to close at 3,317.52 points.
The ChiNext Index, together with the Shenzhen Component Index and other indices, reflects the performance of stocks listed on the Shenzhen Stock Exchange
Chinese shares close lower Thursday
Global investors are closely tracking China's annual "two sessions," where the government work report pledges deeper reforms in the capital market's investment and financing system, steps likely to recalibrate risk and returns for overseas funds.
Jonathan Krane, CEO of U.S.-based KraneShares, said signals of further opening-up from the sessions could prompt global investors to raise their China allocations, underscoring how policy shifts in China ripple through international markets.
"We think that its important that China further opens up its it markets for global institutional investors. So access to the mainland markets is going to be important going forward. And we believe that global institutions will increase their allocation to the China market," he said.
China's government work report pledged to accelerate fundraising for strategic tech firms, promising "green channels" for initial public offerings (IPO)s and mergers and acquisitions, measures aimed at turning innovation into investable growth.
The report also called for closer links between technological breakthroughs and industrial application, signaling China's intent to fast-track capital access for companies in key sectors.
Krane noted that such signals reinforce the strong value case for China's technology companies, highlighting rising global demand for funds tied to the STAR Market.
"We have two funds in particular that are very popular with U.S. and global investors. And one is our KraneShares SSE STAR Market fund listed on the New York Stock Exchange.And that is the only fund globally listed on a global exchange that provides investors' access into the STAR market in China. Also KWEB, that's KraneShares' flagship fund, it's our KraneShares' CSI China Internet fund. Artificial intelligence now is a big part of that sector, so we look at that as a big growth engine of China KWEB," he said. China's annual "two sessions" convene the National People's Congress (NPC) and the Chinese People's Political Consultative Conference(CPPCC), the country's highest legislative and advisory organs. As the CPPCC wrapped up Wednesday and the NPC closed Thursday, the policy signals delivered are already reverberating through international markets.
Global investors eye China’s "two sessions" as reforms signal wider market access
