Securities Times｜SSE Arranges Roadshows and Promotions in Europe, with Strengthened Commitment by International Investors to Chinese Equity Assets

Translated from Securities Times, Zhang Shuxian

To follow through on the commitment to high-standard opening up of China's capital market, enhance the overall capacity of opening up and facilitate cross-border cooperation on investment and financing, Shanghai Stock Exchange (SSE) recently led a team of representatives from high-quality SSE-listed companies to visit London and Geneva for market promotion and international exchange. The event facilitated in-depth engagement with financial institutions through company roadshows and one-on-one visits, which comprehensively showcased the achievements and potential of the opening up of China’s capital market.

International investors agreed that Chinese stocks have been undervalued compared to other major markets, and the coming period will be an important window of opportunity to invest in China. As international investors, they would stay committed to Chinese equity assets.

The roadshows demonstrate diverse values and confidence in China's economic prospect

The roadshows were joined by 12 companies, including Hengrui Pharmaceuticals, Wanhua Chemical, China Commodities City, Ningbo Zhoushan Port, CITIC Metal, Chalco, CRRC, China Tourism Group Duty Free, COSCO Shipping Holdings, Orient Wires & Cables, Kingsoft Office, and Ninebot. These companies are leading figures operating in biomedicine, advanced manufacturing, maritime transportation, information technology, business services and other industries.

During the roadshows, these companies demonstrated their comprehensive strength and development prospects from various aspects, including corporate governance structure, cutting-edge product innovation achievements, global market layout, and competitive advantages in the global industrial chain. They conveyed the vitality, resilience, and potential of the Chinese economy to the international market, providing international investors with a more intuitive and profound understanding of the new outlook of high-quality development of SSE-listed companies.

The event attracted representatives from over 70 international institutions, including UBS, Ninety One Hong Kong Limited, and Legal & General Group. As several responsible persons from those institutions pointed out, China's capital market is showing opportunities for both repricing of traditional industries and growth of emerging industries. Low valuations, high dividends, new blue chips, and high-tech companies with global competitiveness offer diversified allocation options for international investment portfolios.

The STAR Market becomes a prominent innovation highland with its notable strength being recognized by international buyers

Since the beginning of this year, Chinese tech companies represented by DeepSeek have garnered great market attention, prompting international investors to reassess the value of Chinese tech assets. As a hub for hard technology enterprises, the STAR Market has significantly enhanced its appeal to foreign investment. Data shows that in the first quarter of 2025, the proportion of STAR Market holdings by Northbound Stock Connect funds increased by 0.62 percentage points compared to the fourth quarter of last year. In May this year, more than 200 foreign institutions paid over 500 visits to A-share companies for research purpose. STAR Market companies such as Montage Technology, Opt Machine Vision Tech, and ORBBEC each received visits from over 30 foreign institutions.

In the promotion event, the SSE, touching upon the founding goal and development process of the STAR Market, introduced the initiatives and achievements of the STAR Market in supporting research and development innovation, facilitating business expansion overseas, promoting sustainable development, attracting long-term capital, optimizing the investment ecosystem, and leading institutional reform. Overseas institutions generally agreed that high-quality A-share listed companies, marked by those on the STAR Market and representing the huge potential of China's economic development and technological innovation, provide investors with great confidence amid increasing major country competition and economic uncertainty. The continued release of technological innovations and rapid growth of company performance increasingly highlight their investment value.

Foreign institutions are optimistic about the long-term investment value of A-shares, with investment demand continuing to rise

During the London and Geneva roadshows and subsequent one-on-one visits, the SSE introduced major European investment companies to the progress of reform and opening-up in China's capital market. The SSE gave a comprehensive overview of China's capital markets and various products, including stocks, bonds, index funds, and derivatives, while also listening to international investors' opinions and suggestions on China's capital market.

The event has been highly recognized by international investors, who believe that the attractiveness of A-share valuations continues to increase. Investment institutions such as Ninety One Hong Kong Limited have expressed firm confidence in the prospects of China's capital market, while also closely monitoring the significant breakthroughs achieved by Chinese technology companies. The rising of Deepseek demonstrates the great capacity and potential for innovation by Chinese enterprises. Against the backdrop of global economic fluctuations, Chinese assets and enterprises have demonstrated strong resilience. In the future, they will continue to firmly hold Chinese equity assets and hope to have more opportunities to gain deeper insights into more high-quality listed companies in China.

A representative of the Bank of China's Geneva Branch stated that this event helped them realize the keen attention and enthusiasm from overseas investors towards Chinese listed companies. They will continue to leverage the bank's global and comprehensive advantages to support the further opening up of China's capital markets with practical actions and professional cross-border services.

A representative from CITIC Lyons noted that in recent years, an increasing number of clients have shown strong interest in investing in the Chinese market. The one-on-one on-site communication helps establish good relationships between overseas investors and listed companies, and enhances overseas investors' understanding of Chinese companies.

Furthermore, several institutions noted that since September last year, a series of reform initiatives have been introduced in China's capital market. These policies, especially those aimed at improving the quality of listed companies, enhancing investor returns, attracting long-term funds, and maintaining market stability, have significantly boosted their confidence in investing in China.

Relevant personnel from the SSE stated that in recent years, the exchange has been committed to broadening the opening up to the outside world. The SSE has striven to improve services for international investors by better connecting with international investors, creating an international roadshow brand, and expanding global roadshow activities. Since 2023, the SSE has held promotion events in 12 countries and regions, covering major global financial and asset management centers. It has visited nearly 100 overseas investment companies, effectively expanding communication channels with international investors and deepening exchanges and cooperation with international markets. The SSE will continue to uphold the development philosophy of openness, innovation, and cooperation, creating a value platform through higher-level opening and innovation to provide shared development opportunities for Chinese and foreign investors. This will help China’s capital market secure an important position in the global asset allocation system and serve the high-level two-way opening up of the capital market.

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