Recently, several foreign institutions have expressed optimism about the Chinese capital market. Goldman Sachs, JPMorgan Chase, UBS and other international investment banks have successively released reports, continuing to be optimistic about the performance of the Chinese stock market in the medium term, believing that the current market has entered a more sustained upward trend. Behind this optimistic judgment is the in-depth research of foreign institutions on Chinese assets. According to Wind Information data, as of October 23, a total of 748 foreign institutions have conducted 5888 surveys on A-share companies since the beginning of this year. Leaders from niche fields such as new energy, high-end healthcare, and machine vision, such as Huichuan Technology and Mindray Medical, have gained attention. From the successively disclosed third quarter reports, it can be seen that Qualified Foreign Institutional Investors (QFII) actively increase their holdings in high-quality A-share companies, such as Morgan Stanley's increase in holdings of Siyuan Electric Co., Ltd. and BNP Paribas' increase in holdings of Nanjing Bank Co., Ltd., demonstrating the long-term investment intention of foreign institutions in Chinese assets. The Goldman Sachs China Equity Strategy Team mentioned in a research report released on October 22 that the Chinese stock market will enter a more sustained upward trend, and it is expected that major stock indexes will rise by about 30% by the end of 2027. The China stock strategy team of JPMorgan Chase also expressed optimism about the performance of the Shanghai and Shenzhen 300 Index in the coming year. Foreign institutions unanimously believe that under multiple favorable factors such as continuous improvement in corporate profitability and market valuation repricing, the long-term investability of the market has significantly increased. Enterprise profit growth is accelerating. Goldman Sachs believes that artificial intelligence (AI) has rewritten the profit landscape, and the profit boosting effect brought by AI capital expenditures is increasingly evident; The "anti internal competition" measures inject new impetus into the profit growth of enterprises; The "going global" of enterprises demonstrates China's increasingly strong competitiveness, and these factors collectively increase the trend driven earnings per share growth rate to about 12%. Li Changfeng, the head of market strategy at Lianbo Fund, believes that the A-share market is moving towards a healthier and more sustainable development direction. Investors do not need to overly focus on short-term market fluctuations, but should focus on high-quality enterprises with sustained profitability and growth capabilities, and strive to seize the historic opportunity of the long-term development of the Chinese stock market. The significant room for improvement in corporate valuation is also an important reason why foreign institutions are optimistic about Chinese assets. JPMorgan Chase stated that from a valuation perspective, the current stock prices of leading companies in the healthcare services, finance, education, and entertainment sectors are within a relatively reasonable range compared to their median valuations since 2010, and their valuations are expected to increase in the future. Goldman Sachs believes that the Chinese stock market has a long-term valuation discount compared to other global stock markets, and the relaxation of Federal Reserve policies also contributes positively to stock valuations. In terms of layout direction, it has become a consensus among foreign-funded institutions to focus on technology and the field of "anti internal competition". Meng Lei, a China stock strategy analyst at UBS Securities, analyzed that the recent stock price correction in the major technology sector has partially released the risk of position crowding. Meanwhile, the actual technical impact of adjusting the financing conversion rate is very limited. The overall leverage level in the current market is controllable and there are no signs of overheating. The attractiveness of Chinese technology stocks is on the rise. ”The fund manager of Fidelity International believes that China is already in a leading position in technology fields such as electric vehicles, batteries, and robots. In the future, China's technology ecosystem is expected to further improve. JPMorgan Chase stated that themes such as artificial intelligence, robotics, and advanced manufacturing have been fully captured since the beginning of the year, and is optimistic about the follow-up performance of the "anti involution" theme. In addition, high-quality assets with high dividends are also favored. Fidelity International believes that China is committed to enhancing the attractiveness of the stock market, and regulatory agencies are pushing companies to repurchase shares and increase dividends to give back to shareholders. In recent years, Chinese listed companies have become more focused on shareholder returns, which has increased market attractiveness for investors. (New Society)