SSE Steps Up Efforts to Attract Long-term Overseas Capital, as Joint Forces Highlight Opportunities in China's Market

Translated from China Business Network, Luo Ji

In recent years, the Shanghai Stock Exchange (SSE) has been steadfast in advancing the two-way opening of its markets and products, contributing to the high-level institutional opening-up in the capital market. Since 2024, the SSE has organized over a dozen roadshows, promotions, training sessions, conferences, and other activities targeting international investors, covering markets in the Middle East, Southeast Asia, Europe, and the United States, aiming to attract sustained overseas capital. It has also signed multiple memoranda of understanding for cooperation on various projects with different exchanges, strengthening and deepening international collaboration. These efforts have yielded significant results.

Building Bridges to Help Long-Term Foreign Capital Seize Opportunities in China

To deepen engagement with international capital markets and promote the entry of long-term foreign capital, the SSE launched a range of activities under the theme "Focus on SSE: Special Promotion of Southeast Asian Markets" since May 2025. On May 8, the first roadshow targeting the Indonesian market highlighted the development of global and Chinese ETF markets and fostered in-depth discussions with representatives from Indonesian institutions on related topics. Over 200 institutional representatives participated in the event. On May 15, the second event was successfully held. The SSE introduced its overall development, performance highlights, and achievements in the ETF market. Three SSE-listed companies engaged with Southeast Asian investors, with approximately 180 overseas guests participating online.

On May 20, the "STAR Market Promotion and QFII-Related Policy Interpretation" online training session was held, attracting participation from 73 institutions and over 100 representatives across Southeast Asia, the Middle East, the United States, Europe, and other regions.

Additionally, a series of events have been held successively, including Focus on SSE—index-based Investment China Special Topic", "Focus on SSE—SSE STAR Market and QFII Policy Interpretation", and "Discover Value—International Investors Entering SSE-listed Companies". These events focused on topics such as the high-quality development of index-based investment, the achievements and investment advantages of the STAR Market, as well as QFII policies, providing thorough policy interpretation and gathering constructive feedback.

Since the beginning of 2024, according to preliminary statistics, the SSE has organized over a dozen events aimed at international investors, covering markets in the Middle East, Southeast Asia, Europe, and the United States. In April 2024, the SSE and Shenzhen Stock Exchange (SZSE) co-hosted the "New Vision of Investing in China—A-share Listed Companies Promotion Event" in New York, USA. Senior executives from 11 high-quality SSE and SZSE-listed companies traveled to the United States to showcase their investment potential, with nearly 100 American investors attending. In October, the "2024 International Exchange Training Program" was successfully held, attracting over 260 representatives from 26 exchanges. In November, the "Qatar Industrial Investment Cooperation Training Program" was held, exploring pathways for Qatar's long-term funds to invest in SSE-listed companies. In early 2025, the SSE convened a symposium with foreign institutions to deepen its opening-up efforts.

Global Forces Join Hands as Chinese Assets Gain Momentum

Meanwhile, various institutions in the capital market have also accelerated their efforts to "go global". China Galaxy Securities Co., Ltd., leveraging its strategic presence in Southeast Asia, collaborated with its overseas subsidiaries to invite over 60 investors, primarily from Southeast Asia, to the "Focus on SSE: Special Promotion of Southeast Asian Markets" roadshow event. The head of the company's international research department delivered a keynote speech to bolster the confidence of overseas institutions in the Chinese market. In the future, China Galaxy Securities Co., Ltd. will continue to collaborate with the SSE to advance a series of roadshows across Southeast Asia.

From the perspective of global capital flows, the preference of foreign investors for China's core assets is steadily increasing. Wang Zonghao, head of China equity strategy research at UBS Investment Bank, highlighted this trend. Meanwhile, Meng Lei, China equity strategy analyst at UBS Securities, stated that in the first quarter of 2025, overall A-share earnings rose by 3.5% year-on-year, with non-financial sectors registering a 4.2% increase. A-share earnings are projected to climb steadily each quarter throughout the year. According to a report released by UBS on May 21, 30% of family offices surveyed in the Asia-Pacific region plan to increase their allocation to Greater China, and 39% intend to boost their investment in the Chinese mainland over the next 12 months.

Xia Fengguang, Fund Manager at Rongzhi Investment, believes that there are numerous reasons behind the recent increase in foreign capital allocation to China. The weakening US dollar index and the rebound in the RMB exchange rate have enhanced the attractiveness of RMB assets. Profits of leading technology companies have surpassed expectations, and the dividend yields of assets are enticing. In the long term, investors are optimistic about the sustained recovery of China's economy from its low point. Domestically, low risk-free rates, high savings, and ample liquidity further boost equity attractiveness.

Li Yanzheng, Fund Manager at Fortune & Royal Asset, noted that although external uncertainties persist, most stock indexes have recovered from their previous declines. In the second quarter, there might be a phenomenon of "rushing to export". With the support of a package of domestic policies, the fundamentals may outperform expectations. Coupled with monetary easing and medium- to long-term capital, the downside risk for A shares is manageable. The short-term market has support, and there are many structural opportunities.

Despite a complex and ever-changing external environment, China remains steadfast in pursuing high-quality economic development, maintaining stable and predictable macroeconomic policies, and continuously advancing efforts to open up. Looking ahead, the SSE will further enhance both the depth and breadth of services for international investors, effectively narrate the story of China's capital market, and showcase the potential and resilience of China's economy as well as the new outlook of its further opening-up. It will also promote the high-level two-way opening-up of the capital market, with more promotional activities targeting overseas investors to be gradually launched.

The above information is provided for reference purposes only and does not constitute investment advice.