Recently, China rolled out a raft of incremental policies, which caused great turbulence in the stock market. When trading began on Oct. 21st, the three major indices (Shanghai Composite Index, Shenzhen Component Index, ChiNext Index) for China’s A-share market all opened high, followed by a brief decline and seesawed growth; The BSE 50 set a record high after days of consecutive growth.
「Source：Internet」
A soaring stock market implies that foreign investment is flowing back; multinational financial services companies like J.P. Morgan and Goldman Sachs also harbor positive anticipation for Chinese assets.
A production line of a Sino-German joint venture in Jiaxing
「Source: People's Daily」
Secondly, China has provided foreign investors with a more open Chinese market. As China opens up its medical and health sector further, Eli Lilly and Company from the U.S. have announced its decision to invest an additional 1.5 billion RMB in China. It is also planning to introduce its innovation incubator in China, so that clinical studies and medical R&D can be catalyzed. What’s more, Tesla has built the very first Gigafactory outside the U.S. in Shanghai, with its Megafactory under construction also in Shanghai; the total assets of foreign-funded banks in China hit 3.86 trillion RMB… they can testify to how China has been opening its market.
Easier Entry to China「Source: National Immigration Administration」
Thirdly, China has demonstrated strong resilience and stable economic performance with positive momentum. Based on recent statistics, the country’s total import and export volume in the first three quarters reached 32.33 trillion yuan, with each quarter all exceeding 10 trillion with a constantly rising trajectory. Usually, western holidays like the Halloween and the Thanksgiving will fuel exports, which can bring Q4 projections to over 11 trillion and the 2024 total to about 45 trillion RMB hopefully. As for the stock market, given that the U.S. Fed has cut its policy rate, one can say China is now the safest, and most stable market with the highest ROI.
「Source：Xinhua」
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