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China: Foreign capital bets big on Chinese assets amid promising market outlook

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A growing number of global financial institutions have voiced confidence in China's market outlook, with several investment banks maintaining overweight calls on Chinese equities and foreign funds stepping up purchases. Goldman Sachs this month reiterated its "overweight" rating on Chinese stocks, while Standard Chartered Bank, in its Global Market Outlook H2 2025, also kept an overweight stance. Meanwhile, international investment banks are also increasing their holdings in China's stock market. Goldman Sachs said hedge funds had bought Chinese equities at the fastest pace in seven weeks, making China the largest destination for net hedge fund inflows globally in August. Data from China's State Administration of Foreign Exchange showed that overseas investors increased their holdings of onshore Chinese stocks and funds by 10.1 billion U.S. dollars in the first half of 2025. Notably, net purchases accelerated in May and June to 18.8 billion dollars. Looking ahead, foreign financial institutions remain largely upbeat about the fourth quarter. Standard and Poor Global Ratings recently affirmed China's sovereign credit rating at A+ with a stable outlook. Analysts say the consensus among foreign investors is that China's economy has a solid foundation, multiple advantages and strong resilience, with growing drivers that support high-quality development. Shotlist: Beijing, China - Aug 31, 2025: FILE: Shanghai, China - Date Unknown 1. Various of cityscape; high-rise buildings; FILE: Shanghai, China - 2024 2. Man walking, office buildings of financial institutions; FILE: Switzerland - Date Unknown 3. UBS sign; FILE: Shanghai, China - Date Unknown 4. Sign of J.P. Morgan; 5. Woman working in office; sign of Morgan Stanley; FILE: New York City, USA - Date Unknown 6. Goldman Sachs sign; Beijing, China - Aug 31, 2025 7. Screen shots of Goldman Sachs report on Chinese equities; Hong Kong, China - Recent 8. SOUNDBITE (English) Raymond Cheng, Chief Investment Officer, North Asia at Standard Chartered Bank (partially overlaid with shot 9): "There are many factors that support our overweight allocation to China equities, including external as well as domestic forces. Externally anticipating that China would be highly vulnerable to the trade tensions, but as it turned out China has managed the situation quite well. Domestically, we are seeing more policy support to stabilize the economic growth conditions, including the recent announcement of new birth subsidies. So, as we go into the fourth quarter, we believe there should be a more policy support."; [SHOT OVERLAYING SOUNDBITE] FILE: China - Date Unknown 9. Various of stock brokers working, screens showing stock information; [SHOT OVERLAYING SOUNDBITE] FILE: Shanghai, China - Date Unknown 10. Various of sign of Shanghai Stock Exchange; 11. Interior of Shanghai Stock Exchange building; FILE: Shenzhen City, Guangdong Province, south China - Date Unknown 12. Various of sign of Shenzhen Stock Exchange, statue; Shanghai, China - Recent 13. SOUNDBITE (Chinese) Zhu Bingqian, chief market strategist of Neuberger Berman (China) (ending with shot 14-15): "As of last week, the total market value of A-shares held by foreign institutions stood at about 2.5 trillion yuan, up 8 percent from 2.31 trillion yuan at the end of last year. We also saw continued net inflows of northbound capital last week."; 14. Sign of Neuberger Berman; Shanghai, China - Recent 15. Various of office workers; FILE: Beijing, China - Date Unknown 16. Various of cityscape. [Restriction - No access Chinese mainland]

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