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Hong Kong: Foreign investors still optimistic about development prospects of China's economy

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Foreign investors are still optimistic about the strong resilience and development prospects of China's economy, with a particular focus on the burgeoning opportunities in high-end manufacturing, technological innovation, and consumption areas that align with the country's economic transformation and upgrading. As of Wednesday, qualified foreign institutional investors (QFII) became the top 10 tradable shareholders with 374 new shares in the second quarter. At the same time, they also increased their shares in 157 existing shares. The majority of these investments are concentrated in sectors such as chemicals, pharmaceuticals and biotechnology, machinery, and electrical equipment. According to research reports from foreign financial institutions, "technological innovation" is a frequently mentioned term in all the reports. The consumption field is also highly favored. HSBC believes that policy support for promoting consumption is expected to continue, maintaining a positive outlook on opportunities in the consumption sector. As the purchasing power of China's Generation Z increases, new consumption trends are expected to present structural growth opportunities in the future. Shotlist: Hong Kong, China - Recent: FILE: Shanghai, China - Date Unknown 1. Aerial shots of cityscape; FILE: China - Exact Location and Date Unknown 2. Various of Chinese, foreign experts, business representatives discussing; FILE: China - 2025 3. Various of equipment in operation; Hong Kong, China - Recent 4. SOUNDBITE (Chinese) Ronald Wan, Hong Kong investment banker (starting with shot 3/ending with shots 5-7): "These sectors not only represent short-term growth potential but also possess medium- to long-term competitiveness, which is why they continue to attract attention. More importantly, the pace of capital inflow is relatively stable and not driven by short-term volatility, indicating that foreign investors' confidence in the Chinese market is strengthening and the longevity of their investments is increasing."; FILE: Shanghai, China - Date Unknown 5. Various of researchers working in lab; FILE: Shenyang City, Liaoning Province, northeast China - January 2025 6. Various of workers, robotic arms operating on auto assembly line; FILE: Tianjin Municipality, north China - Date Unknown 7. Various of Airbus assembly line in operation; FILE: Beijing, China - January 2025 8. Various of biopharmaceutical manufacturing line; Shenzhen City, Guangdong Province, south China - Recent 9. SOUNDBITE (Chinese) Xing Ziqiang, chief economist at Morgan Stanley China: "The vitality of industries, particularly the resilient spirit of entrepreneurs that we observe at the micro level, is evident in various sectors: the domestic replacement of AI-driven computing power, innovations in pharmaceuticals, the rise of humanoid robots, and the next phase of promoting intelligent driving. All these factors showcase China's innovative capabilities and the evolving landscape of industrial competition."; FILE: China - Exact Location and Date Unknown 10. Humanoid robot in operation; 11. Various of vehicles moving on roads; animation showing network connection between vehicles; 12. Automatic drive in progress; FILE: Hainan Province, south China - July 2025 13. Aerial shot of sea, beach; 14. Various of tourists on beach; FILE: Shanghai, China - July 28, 2025 15. Various of people in shopping mall; 16. Various of people in shopping street. [Restriction - No access Chinese mainland]

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