Foreign capital is accelerating its shift, betting on China Assets.

Chris Murphy, Co-Head of Derivatives Strategy at Haina International Group, stated that last Friday investors heavily purchased $iShares China Large-Cap ETF (FXI.US)$ Call Options. Other Call Options related to China Assets also increased significantly, including $KraneShares CSI China Internet ETF (KWEB.US)$ . ETFs related to China Assets also strengthened.

Last Friday, China Assets in the US stock market took the lead. $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ A large increase of 5.6%, $Direxion Daily CSI China Internet Index Bull 2x Shares ETF (CWEB.US)$ A large increase of 6.08%, KWEB rose 3.05% and FXI increased nearly 2%.$NASDAQ Golden Dragon China (.HXC.US)$Closed up 3.18%, among which, $JD.com (JD.US)$ A significant increase of over 10%,$PDD Holdings (PDD.US)$Increase of over 5%.

At today's open, the three major Hong Kong indices all opened higher, with the Hang Seng Index rising over 1% to surpass the 19,800 point mark, marking its fourth consecutive day of gains; the A50 Index Futures rose nearly 1% during the day.

Multiple foreign institutions have a positive outlook on the future performance of the Chinese market. These foreign institutions believe that corporate profit recovery will support the upward trend of the market, with incremental funds expected to continue to flow in.

Wang Xiaojing, the Director of Quantitative and Multi-Asset Investments at Blackrock Debt Strategies Fund Inc, stated that from a global market perspective, Chinese stocks are still at a valuation low point. If there are continuous incremental policies issued, it will further enhance overseas investors' confidence in China's economic transformation and long-term debt reduction goals, and foreign capital is expected to further flow back into the Chinese market. Blackrock Greater China investment strategist Lu Wenjie mentioned in the latest report that he holds a tactical 'overweight' view on Chinese stocks.

NIE Yixiang, Co-Chief Investment Officer at Fidelity International (China) Co., Ltd., believes that A-share valuations are attractive both horizontally and vertically, and since China's assets are still significantly underweighted in global investors' asset allocations, it is expected that overseas funds will return by 2025, increasing allocations to China's core assets.

Goldman Sachs, in a recently released Research Report, forecasts that the MSCI Chinese Index and the CSI 300 Index will rise by about 20% by the end of 2025. Based on considerable risk-reward, the institution recommends continuing to overweight A-shares and offshore Chinese stocks.

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