Since 2025, with the high-quality development of the economy, the continuous growth of new driving forces, and the continuous promotion of comprehensive deepening reforms in the capital market, the ecological environment of China's capital market has undergone fundamental changes, and foreign institutions' interest in Chinese assets, including A-shares, has continued to increase. Recently, international geopolitical conflicts have intensified and global economic uncertainty has increased. In this context, industry insiders point out that the logic of China's asset revaluation has not changed, and valuation advantages and industrial innovation are expected to drive global capital to continue increasing its allocation of Chinese assets. At the recent symposium of foreign-funded institutions on the "15th Five Year Plan" for the capital market held by the China Securities Regulatory Commission, multiple foreign-funded institutions unanimously agreed that since the implementation of the new "National Nine Articles", China's capital market has achieved positive results in improving basic systems, enhancing market functions, increasing the investment value of listed companies, and expanding high-level opening up. The willingness and enthusiasm of foreign capital and foreign-funded institutions to participate in China's capital market have significantly increased. Multiple institutions have expressed confidence in the long-term positive development of the Chinese economy and capital market. This statement is supported by market data. According to research by Puyin International, as of February 18th, according to EPFR data, there has been a strong net inflow of $14.88 billion in foreign investment into the Chinese mainland market since the beginning of the year. Passive foreign investment remains the main driving force for foreign capital inflows, with a net inflow of $11.85 billion. It is worth noting that active funds have converted into a net inflow of $3.03 billion, marking the first consecutive 6-week net inflow since January 2023. The institution stated that the current position of foreign investment in the Chinese stock market is still relatively low, and there is still significant room for return. The data also shows that since 2026, foreign institutions have actively researched A-share listed companies. According to Wind's statistical data, as of March 3rd, a total of 255 foreign institutions conducted surveys on A-share listed companies during the year, with a total of 688 surveys conducted. Industry insiders believe that the cost-effectiveness brought by valuation advantages, as well as China's technological innovation and industrial upgrading, are favorable conditions facing China's asset and capital markets, and are also the main factors attracting foreign investment to increase China's asset allocation. Fu Lichun, a financial commissioner of the China Society for Market Regulation, told reporters that currently, the overall valuation of both A-shares and Hong Kong stocks is much cheaper than that of US stocks. For long-term funds, this is the cost-effectiveness. At the same time, many industries in China are evolving, from new energy to high-end manufacturing, and then to the AI application layer, with many structural opportunities. Mature markets tend to be 'stable', while the Chinese market tends to be 'changing', and 'changing' often hides excess returns. From the perspective of valuation level, the latest research by Huaxi Securities shows that as of February 27th, the PE (TTM) of the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index were 17.20 times, 33.65 times, and 43.32 times, respectively. In contrast, the PE of the S&P 500, Nasdaq, and Dow Jones Industrial Average are 28.54 times, 39.74 times, and 27.42 times, respectively, all significantly higher than the historical median since 2010. In recent times, international geopolitical conflicts have intensified, global economic uncertainty has increased, and it has had an impact on global financial markets. In this context, the certainty of China's economy and assets is even more commendable. Tian Lihui, Dean of the Institute of Financial Development at Nankai University, told reporters that the favorable conditions for attracting foreign investment in the current Chinese capital market can be summarized as three levels of "certainty". One is the resilience of macro fundamentals. The Chinese economy is moving forward under pressure in a complex environment, and the cultivation of new quality productivity is accelerating. The second is the stability of the institutional environment. Since the implementation of the new "National Nine Measures", the basic system of the capital market has been systematically reshaped, and regulatory authorities and foreign institutions have maintained regular communication, transmitting transparent and predictable policy signals. The third is the leading role of industrial upgrading. The breakthroughs in China's technological innovation field are resonating with the global capital's demand for technological transformation dividends. These three "determinacy" together constitute the unique attraction of Chinese assets compared to mature markets, injecting confidence into foreign investment to increase their allocation of Chinese assets. China International Capital Corporation (CICC) pointed out that the short-term risk appetite of Chinese assets, including A-shares, may be disturbed, but it is expected to show relative resilience and not change the medium-term positive trend. In the medium to long term, the resonance between the reconstruction of the international order and the trend of industrial innovation in China is the core driving force behind the current A-share market rise and China's asset revaluation. Short term external shocks have not shaken the above logic. If the changes in the geopolitical landscape further accelerate the process of restructuring the international monetary order, it may actually strengthen the logic of China's asset revaluation. In addition, against the backdrop of macro paradigm shift and continuous promotion of capital market institutional reform, the underlying environment of A-shares is undergoing structural improvement. The evolution of market operation mechanism and investor structure has made it more capable of forming a "steady progress" pattern compared to the past, and A-shares are expected to continue their steady upward trend in the medium and long term. Wu Qing, Chairman of the China Securities Regulatory Commission, pointed out that we must adhere to the principle of promoting reform and development through opening up, focus on promoting the opening up of the capital market to a deeper and higher level, actively participate in and promote global financial governance reform, and continuously create a transparent, stable, and predictable market environment. Tian Lihui believes that the core of enhancing the attractiveness of A-shares to foreign investment lies in promoting a deep breakthrough in "institutional opening-up". We need to internationalize the rules to overcome obstacles, benchmark against international best practices, simplify cross-border investment and financing processes, and solve the "last mile" challenges in terms of capital inflows and outflows, exchange rate hedging, and other operational aspects. To solidify the value foundation through transparent governance and cultivate a group of high-quality benchmark enterprises with global competitiveness. We should build a win-win pattern with ecological inclusiveness, and construct a market ecology with transparent rules, neutral competition, and predictable returns. He stated that when global capital discovers that the Chinese capital market is not only a place for risk diversification, but also a source of excess returns, the increase in allocation ratio will be a natural result. When foreign investment feels that the rules of the Chinese market are fair and the returns are predictable, capital will naturally form a rational choice of "long-term rooting" rather than "short-term game". Only by allowing foreign investment to both "enter" and "stay" can China's capital market truly become a "safe haven" and "place of value" for global capital allocation. (New Society)