CSRC Foreign Investment Roundtable Signals: Financial Associated Press Investigates Foreign Investor Circle — Moving Away from Caution and Actively Increasing Allocations! AI Investment Hides New Logic

Cailian Press, February 28 (Reporter Gao Ping) — On February 27, the China Securities Regulatory Commission held a symposium with foreign institutional investors on the “14th Five-Year Plan” for the capital market. Participants believe that since the implementation of the new “National Nine Rules,” foreign investment and institutions’ willingness and enthusiasm to participate in China’s capital market have significantly increased.

Since the beginning of 2026, global capital has been actively deploying in China. Materials technology company Wall Nuclear Materials recently listed on the Hong Kong Stock Exchange, with top global quantitative trading firm Jump Trading among its cornerstone investors. Prior to this, LANQI Technology’s Hong Kong IPO attracted long-term funds from domestic and international investors, including UBS Asset Management, J.P. Morgan Asset Management, and Aberdeen.

Meanwhile, foreign institutions are conducting intensive research. Wind data shows that over 230 foreign institutions have researched A-share listed companies this year. Leading firms such as Morgan Stanley, BlackRock, Goldman Sachs, and Citibank have been frequently involved. Simultaneously, foreign investors have increased their holdings in Hong Kong stocks.

“Foreign capital still has a low allocation to Chinese assets,” said a senior executive at a foreign institution in an interview with Cailian Press. The international community’s attention to China’s market has markedly increased, prompting many international investors to reassess and reallocate Chinese assets.

Regarding China’s capital market in 2026, foreign institutional respondents told Cailian Press that the market does not lack potential liquidity. As household wealth continues to shift into the capital market and foreign inflows persist, market funding is well supported. For conservative investors, it is recommended to focus on high-dividend sectors. Overall allocation strategies suggest adopting a “barbell approach,” with one end holding stable assets and the other investing in emerging productive sectors.

Frequent Actions, Foreign Capital Has Shifted from Observation and Low Allocation to Active Increase

Since 2026, global capital has shifted from mere positioning to substantive deployment in China. Major foreign firms like J.P. Morgan have invested over HKD 1 billion in early 2026 to increase holdings in leading Hong Kong stocks such as CATL and Cinda Biotech, covering new energy and biopharmaceutical sectors.

Additionally, foreign investors are actively participating in IPO cornerstone investments in Hong Kong. Since January, cornerstone investors for new listings like Biren Technology, Dongpeng Beverage, Jingfeng Medical, LANQI Technology, Lead Intelligent, and Muyuan Foods include international giants such as Temasek, BlackRock, UBS Asset Management, J.P. Morgan, and FMR.

Data also shows increased enthusiasm among foreign investors researching A-shares. Wind statistics indicate that in January 2026, 220 foreign institutions conducted 526 research visits to A-share companies, compared to only 129 institutions and 237 visits in December 2025.

“Currently, foreign capital’s stance on Chinese assets has shifted from observation and low allocation to active increase; China’s economic policies (such as expanding domestic demand and infrastructure investment) and its comparative advantages over other global markets are key drivers of capital inflows. The overseas investment community’s understanding and attention to Chinese policies are also continuously rising,” said Deng Jianan, Vice CEO of Oriental Asset Management Hong Kong.

Another foreign CEO in China echoed this sentiment, revealing that international attention to China’s market has significantly increased, with many investors re-evaluating and reallocating Chinese assets.

Standard Chartered believes that China may introduce more decisive targeted stimulus measures in 2026, especially following the release of the “14th Five-Year Plan,” which emphasizes accelerating investment in advanced technologies to enhance self-sufficiency and productivity. The bank remains overweight on Chinese stocks, expecting targeted policy stimuli and strong earnings growth related to AI themes to support China’s economy.

Yao Yuan, Senior Investment Strategist at Oriental Asset Management Asia, also told Cailian Press that China’s market does not lack potential liquidity in 2026. As household wealth shifts into the capital market and foreign inflows continue, market funding remains robust.

Tech and Biopharmaceuticals Favored; AI Not a Bubble but Market Vehicle Shows Signs of Bubble

In foreign research, sectors such as semiconductors, AI, biopharmaceuticals, and new energy are favored. Wind data shows that companies like Huaming Equipment, Yingstone Innovation, and Inovance Technology have each been researched by over 50 foreign institutions.

Among Hong Kong IPO cornerstone investors, many are industry leaders in AI, chips, and semiconductors, also covering consumer, medical, and high-end manufacturing sectors.

Foreign institutions generally express optimism about technology and healthcare sectors. Yao Yuan mentioned that Europe and emerging markets have strong investment potential. Key sectors include AI, finance, industry, and healthcare.

Yao Yuan stated that AI aligns with the global technological revolution, benefiting from industry reforms and interest rate environments, while the industrial sector is recovering globally, especially in European defense and infrastructure, creating opportunities. The healthcare sector is driven by consumption upgrades and aging trends, ensuring steady growth. These four sectors form the core of diversified investment portfolios.

From a technological development perspective, Yao Yuan believes AI is at the core of a new wave of technological revolution, with long-term potential to upgrade industries and improve productivity. It is not a short-term market hype bubble. However, some AI stocks are overhyped with inflated valuations, showing signs of bubbles.

Based on this, Yao Yuan highlights three major risks for investors: first, profitability risk—some companies have not yet established stable earnings; second, liquidity risk—if market liquidity tightens, overvalued AI stocks may face valuation corrections; third, regulatory risk—widespread AI application may lead to tighter data security, ethical, and regulatory policies, constraining industry development.