According to the Zhito Finance APP, top Analysts from Wall Street Financial Institutions believe that the latest measures by the Chinese government will inject at least 1 trillion yuan (approximately 138 billion USD) of additional funding support into the A-share market by 2025. The forecast from Wall Street commercial bank giant JPMorgan is the most optimistic, projecting a total of 13 trillion yuan of incremental funds to be injected over the next three years. With an immense amount of funds about to flow into the Chinese stock market, these Wall Street giants envision a so-called "long-term bull market" for the A-share market.

According to JPMorgan's latest forecast data, the overall additional purchase volume by insurance companies and mutual fund companies is approximately 1.3 trillion yuan this year. The institution states that although this only accounts for about 1.7% of the current total trading Market Cap of the A-shares, it expects the new capital inflow in the next three years to potentially reach a scale of 4 to 13 trillion yuan. JPMorgan did not provide detailed information on its calculation method.

JPMorgan indicates that this latest forecast data is based on new regulations from Chinese Financial regulatory agencies, which require that starting in 2025, major state-owned insurance companies in the country must invest 30% of their new premium income into domestic stocks each year. It also stipulates that domestic mutual fund companies should increase their Shareholding by at least 10% annually over the next three years.

In recent months, due to concerns about a prolonged global economic slowdown and the significant threat posed by the new US President Donald Trump's tariff increases, the Chinese stock market has been under pressure. This month, as global institutional investors closely monitor whether these policy measures are producing more consistent evidence of effectiveness, the "MSCI Chinese Index," which covers numerous core symbols in A-shares and Hong Kong stocks, briefly entered bear market territory.

The latest forecasts from other Wall Street financial giants indicate that due to these new market guidelines, at least 1 trillion yuan will be injected into the A-share market this year. The Analyst team at Citigroup Inc. anticipates that the total purchase volume by mutual funds will be around 620 billion yuan, while insurance companies' purchasing scale is expected to be between 200 billion and 630 billion yuan, with a baseline expectation of an additional 1 trillion yuan of incremental scale. UBS Group predicts that the inflow of funds from insurance companies will reach 1 trillion yuan, while the Shareholding increase from mutual funds is expected to reach approximately 590 billion yuan.

Five departments voice strongly: vigorously promote the entry of medium- and long-term funds into the market.

On Wednesday, Chinese government departments launched a series of measures to stabilize the stock market, including plans to increase the investment quota of retirement funds in Chinese listed companies, as well as to urge insurance companies and mutual funds to intensify their allocation of A-shares, aiming to push medium- and long-term funds into the market with greater force. The capital markets in China can be said to have received a "policy bonus."

The State Council Information Office held a press conference at 9 AM on Wednesday. At the conference, CSRC Chairman Wu Qing stated that after careful research and demonstration, specific arrangements to steadily increase the scale and proportion of medium- and long-term funds investing in A-shares were clarified. For public funds, it was specified that the market value of A-shares held by public funds must increase by at least 10% per year over the next three years. For commercial insurance funds, efforts are being made to ensure that large state-owned insurance companies allocate 30% of their new premiums to A-share investment starting from 2025, which also means that there will be at least hundreds of billions of long-term funds added to A-shares each year. The second batch of long-term stock investment pilot programs for insurance funds will be implemented in the first half of 2025, with a scale of no less than 100 billion yuan, and it will gradually expand thereafter.

The call to 'go long on China' has long resonated on Wall Street.

The iShares China Large Cap ETF (FXI.US), a hot ETF focused on Chinese assets listed on the NYSE, saw its overall scale exceed 10 billion USD in the second half of 2024, highlighting the growing enthusiasm of foreign capital for Chinese assets, especially in the Hong Kong stock market. This was also the first Chinese stock ETF listed on the US markets to surpass the 10 billion USD asset scale. In 2024, this ETF's value increased by 29%, even outperforming the S&P 500 Index.

It can be seen that prior to the introduction of the latest policies aimed at promoting large-scale medium- and long-term funds into the market, foreign-funded institutions such as Wall Street financial giants had already shown strong bullish sentiment towards the Chinese stock market. With the Chinese government's guidance for mutual funds and insurance companies to increase their investment in the A-share market, these Wall Street financial giants believe that trillions of increment funds are on the way, and their outlook for the Chinese stock market is expected to become more optimistic.

Wall Street financial giant Goldman Sachs, known as the 'leader of the global bull market,' along with other giants like Bank of America, recently issued a bullish call on the Chinese stock market. Goldman Sachs expects that by the end of 2025, the MSCI Chinese Index and the CSI 300 Index, which cover China's core assets, will rise by approximately 20%. Goldman Sachs also noted that some of its clients are reallocating funds to the Chinese stock market, and when stimulating policies are released, Goldman Sachs' clients are expected to flock to the Chinese market.

Goldman Sachs President for the Asia-Pacific region (excluding the Japanese market), Kevin Sneader, stated at a macroeconomic conference that despite the cautious sentiment regarding the Chinese market, Goldman has seen "some clients reallocating their funds to the Chinese stock market." Sneader also mentioned that Goldman and its clients are overall in a state of anxious waiting, observing whether the Chinese government will launch significant stimulus measures following the anticipated positive momentum in the second half of 2024.

Kinger Lau, Chief Strategist for the Chinese stock market from Goldman Sachs, and his strategy team predicted in a research report that the MSCI Chinese Index, which includes core Chinese assets like Alibaba, Tencent, Kweichow Moutai, and China Yangtze Power, as well as the CSI 300 Index, one of the benchmark indices for the A-share market, will rise by about 20% by the end of 2025.

Goldman Sachs stated that the Ministry of Finance of China plans to significantly increase fiscal spending to stimulate consumption and further promote economic expansion, which is an important factor for the institution's optimistic outlook regarding the Chinese stock market in 2025. Goldman Sachs' equity strategy team expects the overall profit scale of the MSCI Chinese Index to grow by 7% in 2025, and is expected to grow by about 10% in 2026.

According to Michael Hartnett, a well-known strategist from Bank of America, the decline in the US stock market will force the Trump administration to make concessions on tariffs, and February or March will be a good time to start going long on US bonds and the stock markets of China, the United Kingdom, and Emerging Markets. Furthermore, the strategy team led by Hartnett at Bank of America believes that the recent breakthrough in copper prices reflects a recovery trend in Chinese consumption, and increasing exposure to international markets like China is also the best strategy to hedge against the downside risks of US stocks.