Global Times｜Global investors remain upbeat on Chinese market in 2025, as moves reflect investment confidence amid policy stimulus
As 2024 draws to an end, multiple overseas financial institutions expressed confidence in China's capital market by expanding local deployment while maintaining a positive outlook for 2025.
Fidelity Fund Management (China) Co, Fidelity International's wholly foreign-owned enterprise, announced on Saturday that the company's first fund of funds (FOF) is scheduled to be publicly offered from January 6-17, 2025.
"China has always been a key strategic market for Fidelity over the long term. We are delighted to introduce our diversified asset investment strategy to Chinese investors through the issuance of our first FOF product, and to further expand Fidelity's product line in China. This marks an important step in our long-term strategic layout in China," Helen Huang, managing director for China of Fidelity International, told the Global Times.
At the same time, another two foreign firms stepped up expansion in China in December. On December 17, Neuberger Berman Fund Management (China) Co, the Chinese unit of US asset manager Neuberger Berman, raised its registration capital from 420 million yuan ($57.54 million) to 550 million yuan, marking the fourth capital increase since its launch in China.
On December 3, the registration capital of Allianz Global Investors Fund Management Co, a wholly owned subsidiary of German investment firm Allianz Global Investors, increased from 300 million yuan to 600 million yuan, according to a Securities Daily's report.
Foreign institutions remain upbeat about the Chinese capital market in 2025.
The domestic economy is expected to gradually stabilize under the guidance of policy stimulus, leading to an earnings recovery for listed companies. The earnings of A-share listed companies are expected to grow by 13.6 percent by 2025, second only to the US among the world's major stock markets. Driven by corporate earnings growth, A-shares are expected to usher in a good performance, AllianceBernstein, a global asset management company, said in a note sent to the Global Times on Monday.
The company said that it remains cautiously optimistic about the A-share market in 2025 and looks forward to the market prospects supported by the recovery of corporate earnings, reasonable valuations and ample policy tools.
Goldman Sachs forecasts a 7 percent earnings growth for the MSCI China gauge in 2025, and a 10 percent expansion in 2026. The index has risen more than 15 percent this year, set for its first annual gain in four years, Bloomberg reported on Monday.
According to an investment outlook for 2025 released by Invesco on December 17, China's increased policy stimulus may enhance the likelihood of economic recovery, potentially generating positive spillover effects on the global economy and stock markets.
The expansion moves and positive outlooks from overseas institutions showcased their confidence in China's economy in 2025 with numerous investment opportunities, Pan Helin, a member of the Expert Committee for the Information and Communication Economy under the Ministry of Industry and Information Technology, told the Global Times on Monday.
This confidence has been boosted by policy efforts as more proactive fiscal policies and a moderately loose monetary policy can effectively bolster the economy, Pan noted, adding that the transformation and upgrading of Chinese enterprises have significantly enhanced their global competitiveness and profitability.
Regarding the investment sectors favored by global investors, Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Monday that the sectors primarily include traditionally advantages industries such as Chinese baijiu (alcoholic beverages) and traditional medicines as well as emerging industries.
When it comes to emerging sectors, Yang highlighted new energy, artificial intelligence and the low-altitude economy as representative industries. He noted that investors seeking stable returns may place more value on leading stocks in traditional industries, while those looking for growth are more interested in emerging sectors.