Several foreign institutions have released their 2025 investment outlooks, all bullish on Chinese assets.

As the year draws to a close, several foreign institutions are stepping up their efforts to expand their presence in the Chinese market through measures such as business expansion and increased capital. In addition, many foreign institutions have released their 2025 Global Investment Outlooks, with a significant focus on the Chinese market, generally considering A-shares as one of the most attractive markets globally.

On December 21, Fidelity International's wholly-owned subsidiary in China, Fidelity Fund Management (China) Co., Ltd. (hereinafter referred to as "Fidelity Fund"), announced that its first fund of funds (FOF) - Fidelity Renyuan Steady Three-Month Hold Mixed Fund of Funds FOF, is planned to be publicly offered from January 6, 2025, to January 17, 2025. The fund aims to actively allocate assets and select funds to explore diverse investment opportunities in the global market for Chinese investors, aiming to achieve long-term stable growth of assets.

Huang Xiaoyi, Managing Director of Fidelity International China and Chairman of Fidelity Fund, said: "China has always been a long-term strategic market for Fidelity. We are delighted to bring our multi-asset investment strategy to Chinese investors through the launch of our first FOF product, further expanding Fidelity's product line in China and taking an important step in our long-term strategic layout in China."

According to the National Enterprise Credit Information Publicity System, at least two wholly foreign-owned public fund institutions have significantly increased their capital in December. On December 3, Allianz Global Investors' wholly-owned Allianz Fund Management Co., Ltd. (hereinafter referred to as "Allianz Fund") completed an increase in capital, with the registered capital increasing from 300 million yuan to 600 million yuan. In April of this year, Allianz Fund announced the official launch of public fund business in China. On December 17, Neuberger Berman's Neuberger Berman Fund Management (China) Co., Ltd. increased its registered capital from 420 million yuan to 550 million yuan, which is the fourth time Neuberger Berman Fund has increased its capital since landing in China.

Shen Liang, General Manager of Allianz Fund, said to the Securities Daily reporter: "In the next few years, China is one of the most important growth markets globally, with significant development opportunities in the asset management industry. The Chinese government has always been open to foreign enterprises, providing a solid policy foundation for Allianz's deep cultivation in China. This capital increase is not only a long-term commitment of Allianz to the Chinese market but also a reflection of our firm confidence in the future development of China's capital and asset management markets. At the same time, we plan to launch a series of innovative and standardized investment solutions to meet the growing and diversified investment needs of Chinese investors."

In addition to the aforementioned foreign institutions continuously expanding their business in the Chinese market, some foreign institutions have revealed signals of bullishness on Chinese assets in their 2025 Global Investment Outlooks.

For example, Invesco, a New York Stock Exchange-listed company, predicted in its "2025 Investment Outlook" released on December 18 that China's increased policy stimulus would raise the possibility of an economic upturn, potentially having a positive spillover effect on the global economy and stocks.

Zhu Liang, Deputy General Manager and Chief Investment Officer of Alliance Bernstein Fund Management Co., Ltd., is also optimistic about the prospects of the A-share market, stating: "A-shares remain one of the most attractive markets globally. The current valuation level indicates that the probability of investing in A-shares is still high."

In terms of specific sectors, consumer, technology, and emerging industries are generally看好 by foreign institutions. Jochen Breuer, fund manager at Fidelity International, said: "For investors偏好ing the Asian region, they can pay attention to the necessary consumer goods sector. These companies are more focused on the domestic market and have defensive attributes, with valuations more attractive than other industries. Many consumer sub-sectors in the Chinese market may迎来profit recovery opportunities, which will drive stock valuations to rebound, while also providing attractive dividend yields."

In the view of Morgan Stanley Fund Management (China) Co., Ltd., two directions deserve continuous attention: First, AI (artificial intelligence) applications. In the past few years, AI computing power has developed rapidly, and the performance of related listed companies has achieved rapid growth. It is expected to continue to grow rapidly next year. The AI infrastructure is becoming more and more perfect, which has laid a good foundation for application breakthroughs. Even if there is no rapid realization of disruptive innovation, many micro-innovations will emerge endlessly, and the attention to AI applications will continue to increase. Second, the advantage of China's emerging industries. Looking at the development trajectory of industries in related foreign countries, once the advantage industries of manufacturing powers achieve breakthroughs in overseas markets, it is difficult to be blocked in the short term. Currently, China has this advantage in many fields, and the space is expanding.