Amid the ever-changing global economy, the value of Chinese assets is undergoing a comprehensive reassessment.

During the National Day holiday, despite the A-share market being closed, Hong Kong stocks and U.S.-listed Chinese stocks still demonstrated impressive performance, attracting global market attention. Several foreign investment banks are bullish on the value of Chinese assets, with Goldman Sachs, JPMorgan, and Citigroup raising their ratings and target prices for the Chinese stock market.

Before the National Day holiday, the People's Bank of China announced several significant policies, including reserve ratio cuts, interest rate cuts, and reductions in mortgage rates for existing housing loans, with market expectations for the PBOC to inject at least 800 billion yuan into the stock market. On October 10, the PBOC announced the creation of an initial 500 billion yuan swap facility to support capital market development, further boosting Hong Kong and A-share markets. On October 12, Chinese Finance Minister Lifu'an announced that a series of targeted incremental policy measures will be introduced in the near term to stabilize growth, expand domestic demand, and mitigate risks, promoting high-quality economic development.

Driven by a series of significant bullish policies, the sentiment of funds going long on Chinese assets has remained highly enthusiastic from before the National Day holiday until now. Various signs indicate that currently, foreign investors' attitudes towards Chinese assets are undergoing a major reversal, as the value of Chinese assets is receiving a comprehensive reassessment, and major institutions' outlook for the future market is becoming increasingly optimistic.

The primary reasons why foreign investment banks collectively adopt a bullish view include: 1. A series of significant bullish policies introduced by the Chinese government covering monetary easing, fiscal stimulus, support for the real estate market, and stock market incentives, which are of landmark significance in terms of scale, breadth, and comprehensiveness; 2. The undervalued and underpositioned market background serving as a starting point, providing upward potential for the valuation of Chinese stocks.

Eric Yee, Senior Portfolio Manager at Atlantis Investment Management in Singapore, stated that he is reducing long positions across various Asian regions to provide funding for purchasing Chinese stocks. This indicates that global funds are accelerating their flow into Chinese stocks, and the value of Chinese assets is undergoing a comprehensive reassessment.

Citic Securities believes that the current stage is in a transitional phase of the expected major reversal towards the turning point of the market. Once the price signals are confirmed and the turning point of the market arrives, it will usher in an annual bull market characterized by the revival of the credit cycle as the core feature.

Goldman Sachs, on the other hand, stated that in recent years, the sensitivity of Chinese stocks to external factors has been relatively low. The uniqueness of the stock market is likely to bring diversification benefits to asset allocators, and Chinese stocks will still have a place in the portfolios of global investors.

In this context, Chinese concept assets are expected to usher in a new cycle of valuation reversal.

On October 12, the All-China Federation of Industry and Commerce released the "2024 Top 500 Private Enterprises in China". As one of the important representatives of Chinese assets, Fosun International (00656) jumped to the 33rd place in the "2024 Top 500 Private Enterprises in China". In the first half of 2024, despite the challenging macro environment, Fosun firmly executed its focusing on the core business strategy, focused on advantageous industry tracks, built leading companies and products in the industry, and made effective progress in business. Its advantages in core industry tracks such as tourism, consumer, pharmaceuticals, and insurance continued to improve, receiving widespread bullish outlook from the market.

In the pharmaceutical field, as a leading innovative pharmaceutical enterprise in China, Fosun Pharma is continuously driving the progress of the pharmaceutical industry. With its strong research and commercialization capabilities, Fosun Pharma has established itself as a leading player in innovative drugs in China. Recently, Fosun Pharma also announced the privatization of the innovative drug platform Henlius and the full acquisition of the core platform in the field of cell therapy, Fosun Kite, further focusing on the company's core innovative assets, continuing to optimize its asset structure, and accelerating cash inflow.

In the tourism sector, Fosun Tourism Group, with its unique light-asset operation model and global layout, in the domestic market stands as a rare tourism enterprise combining a light-asset model and global operational capabilities, setting a benchmark for the development of the Chinese tourism industry. Meanwhile, in the fields of consumer and insurance, Fosun International has also made positive contributions to China's economic growth and industrial upgrading through continuous innovation and optimization.

On October 2, Fosun International successfully completed a sustainable development-linked syndicated loan with a total scale of 0.888 billion US dollars through the greenshoe mechanism. This is one of the largest loans of its kind in the market for Chinese private enterprises so far this year. The company's financing channels remain open, providing strength for the company's steady development in the next phase.

It is understood that currently, many brokerages are optimistic about the efforts made by Fosun International in continuously optimizing funds, asset structure, reducing debt size, and continuously improving financial indicators. Guotai Junan International Securities is particularly bullish on Fosun International's stable leverage ratio, considering the current low asset prices. Guotai Junan International Securities reiterates a "buy" rating for Fosun International, maintaining a target price of 7.5 Hong Kong dollars, indicating a significant upside potential from the current price.

Against the backdrop of the comprehensive reassessment of asset values in China and the positive shift in global market attitudes toward Chinese assets, Fosun Intl is expected to achieve sustained and stable development in the future, thanks to its advantages in core industries, sound financial strategy, and clear development plans. It will also make a greater contribution to the rise of Chinese assets and the development of the Chinese economy.