SOURCE / ECONOMY
China’s capital market to generate greater opportunities for global investors, backed up by vibrant economy: official
Published: May 19, 2025 02:14 PM
A view of Lujiazui Financial District in Shanghai Photo: VCG

A view of Lujiazui Financial District in Shanghai Photo: VCG



China's capital market is likely to present more opportunities for global investors to share China's development dividends, in tandem with the high-quality growth of the Chinese economy and the unleashing of vitality from reform and opening-up, Li Ming, vice chairman of the China Securities Regulatory Commission (CSRC), told the Global Investor Conference on Monday, the Securities Times reported.

"Investing in China means investment with greater certainty," Li said, noting that certainty stems from China's sound economic fundamentals and stable policy expectations. China's GDP grew by 5.4 percent year-on-year in the first quarter of 2025, demonstrating strong resilience. 

China possesses a complete manufacturing system, advanced infrastructure and a massive market, with its economy continuously accumulating development momentum backed up by a stable and secure social environment, Li said. 

Amid slowing global economic growth, China has been a consistent contributor to and a major driver of global GDP expansion, by prioritizing both domestic demand stimulation and further opening-up, which is underpinned by the establishment of a new development paradigm, Li said.

In April, foreign holders of capital showed a growing willingness to invest in yuan assets, with foreign investors holding a net $10.9 billion worth of Chinese mainland bonds, staying at a relatively high level. Meanwhile, foreign investment in mainland stocks shifted to net purchases in the second half of April, according to data released by the State Administration of Foreign Exchange on Monday.

Globally, stability has become a rare "commodity," and a more stable Chinese economy combined with a more resilient A-share market will offer irreplaceable opportunities for global investors. The inflow of annuity funds, public funds and other medium- to long-term capital has exceeded 200 billion yuan ($27.72 billion) so far this year, Li said.

Institutional opening-up will foster a better ecosystem for investing in China, Li said.

"Foreign capital is a crucial participant in and contributor to China's capital market development. The CSRC will remain firmly committed to advancing market-oriented, law-based and internationalized reforms, and boosting the capital market's opening-up through implementing more targeted measures," he said.

The official said that the authorities will enhance institutional transparency and predictability, improve the communication mechanism with international investors, and support qualified foreign institutions to apply for opening new businesses and launching new products in the country, among other measures.

"We forecast that earnings in the A-share market will show a quarter-on-quarter growth trend in 2025," Meng Lei, China equity strategist at UBS Securities, wrote in a note sent to the Global Times.

The A-share market will likely continue to see a net inflow of global capital, Meng said, citing the country's clearer fiscal policies, further opening-up, measures to support the private economy and the inflow of medium- and long-term capital.

Chinese monetary and financial authorities recently announced a series of supportive measures, including policy rate and reserve requirement ratio cuts to stabilize markets and sustain the economic recovery amid external headwinds.

At a press conference held in Beijing on May 7, Wu Qing, head of the CSRC, pledged efforts to keep capital markets stable and active, noting that the commission will help listed companies affected by tariffs cope with challenges.

Relevant authorities will support listed companies in using various financing instruments such as equities, bonds and real estate investment trusts to raise direct financing, and encourage eligible domestic enterprises to pursue overseas listings in compliance with laws and regulations, Wu told reporters.