A concept photo of China's stock market Illustration: VCG

Major international investment institutions are giving higher ratings to lited Chinese companies lately, with a clear focus on artificial intelligence (AI), advanced manufacturing, pharmaceuticals, and financial companies. The moves signal growing international interest in Chinese assets amid complex global conditions, market analysts said.

Chinese analysts noted that in the current complex macroeconomic environment, Chinese assets offer irreplaceable diversification value for global portfolios.

As one of the latest moves, JPMorgan on Wednesday raised its target price for Weichai Power Co, a Weifang-based leading multinational industrial equipment group, from HK$55 ($7.01) to HK$57 while maintaining an overweight rating. 

Its analysts cited an improving shipment outlook, resilient profit margins, accelerating growth in AI data center (AIDC) power supply business, and progress in solid oxide fuel cell (SOFC) commercialization. They noted that the upside potential from domestic and overseas AIDC computing-power demand and SOFC has "not yet been fully reflected in market consensus expectations and valuations." 

Goldman Sachs on Monday upgraded Zhipu AI, one of China's best-known AI model developers, from neutral to buy and set a 12-month discounted cash flow-based target price of HK$1,560. The bank raised its end-2026 annualized recurring revenue forecast from $2.7 billion to $3.2 billion, driven by strong token demand and new commercial terms with Chinese and global hyperscale cloud providers starting in October. 

Additional factors included expanded computing infrastructure, improved inference gross margins through cost efficiency, and progress on product offerings. 

Prior to this, Moody's upgraded the long-term issuer ratings of major Chinese brokerages, including China International Capital Corporation and CITIC Securities, from Baa1 to A3 (outlook stable). 

International rating agency S&P also upgraded China's securities companies. It revised to positive from stable the outlook on the long-term issuer credit ratings for several securities firms and their core subsidiaries, including CITIC Securities, Guotai Haitong Securities Co and Orient Securities Co.

Apart from raised ratings and projections, Goldman Sachs views Chinese assets as an attractive source of portfolio diversification. UBS Securities forecasts 15 percent earnings growth for A-shares in 2026. BlackRock maintains a neutral stance on Chinese equities but highlights AI hardware, power and grid equipment, and physical AI as key areas of focus. Invesco is positive on China's technology ecosystem, according to their analysis reports.

Broader allocation shifts are also underway. According to analysis of nearly 2,800 global funds by Bank of America, active long-only managers have moved their average China equity weighting to "benchmark-neutral" levels starting June, ending a four-year period of underweight positioning.

The funds collectively manage $562 billion in Chinese stocks. Attractive valuations and improving prospects in growth areas such as AI and new energies have contributed to the change.

"Chinese assets provide a powerful, low-correlation cushion that makes them an indispensable diversification tool for investors navigating today's complex macroeconomic environment," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Wednesday.

Overall, these coordinated actions by leading investment banks and rating agencies suggest foreign investors are increasingly seeking higher-certainty entry points into Chinese markets - particularly through companies tied to AI infrastructure, green energy technologies, pharmaceuticals, and systemically important financial institutions - where policy support and structural growth potential are more visible, said Yang.

"Looking ahead, sustained high levels of global AI capital expenditure would support strong demand for chips, servers and related products," Wen Bin, chief economist at China Minsheng Bank, told the Global Times.

On the capital account side, September's financial opening measures - including the nationwide rollout of cross-border cash pooling for multinational companies and the central bank's reaffirmation of two-way market opening - are expected to enhance the appeal of yuan assets to foreign investors, Wen said.