On October 26th, Shenwan Hongyuan's Chairman Liu Jian stated that there is currently greater confidence in investing in Chinese assets, with the long-term allocation value of the A-share market gradually becoming more prominent. Concurrently, the opening up of the financial sector has provided a solid foundation for investing in Chinese assets. Chen Wenhui, Vice Chairman of the China Wealth Management 50 Forum and former Vice Chairman of the China Banking and Insurance Regulatory Commission, said at the meeting that opening up is not just about bringing in foreign investment but also about increasing efforts to promote "going global." Among these, equity investment funds play a key role in promoting the development of emerging industries, especially in the fields of the internet, pharmaceuticals, and new energy.

According to forecasts from multiple international organizations, there is a consensus on economic growth in the coming years, but the headwinds against global economic growth have not weakened. Factors such as population aging, escalating geopolitical conflicts, the restructuring of industrial chains and supply chains, and climate warming are still accelerating. At the same time, the fourth industrial and technological revolution and the industrial revolution may bring new dividends, but these will take time to manifest.

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In terms of cyclical factors in the A-share market, Liu Jian indicated that since the third quarter, these factors have been showing marginal improvements. The real estate market will enter a period of stable adjustment with the support of a new round of real estate policies; the cyclical misalignment between Chinese and American monetary policies will be somewhat alleviated after the Federal Reserve starts to lower interest rates; and the operating performance of listed companies is expected to bottom out and rebound.

From a long-term perspective, sustainable economic development is the foundation for the development of Chinese assets and the capital market. He emphasized that China still has significant room for urbanization and citizenization, and the imbalance in regional development contains huge potential for development and market demand. In addition, while China has been increasing its investment in research and development in recent years, it has also been making continuous breakthroughs in the field of basic frontier research. The industrialization of scientific and technological research and development has accelerated, and the "three new" economy, represented by new industries, new business forms, and new business models, has an added value of over 22 trillion yuan, accounting for 18% of GDP.

According to EPFR data, in September, funds flowing into Asian emerging stock markets reached 16.4 billion US dollars, with funds flowing into the Chinese stock market amounting to as high as 11.4 billion US dollars. Recently, as the Chinese yuan exchange rate has stabilized, global investment institutions have been issuing Chinese stock funds, and international capital's interest in the Chinese capital market has significantly increased.Stabilization of the Chinese Yuan and Global Financial Shifts: China's Capital Market Becomes a Focus of International Investment

When discussing the current state of the global financial market, some unique manifestations of the economic soft landing are worth noting. Although many institutions currently predict that the global economy has essentially achieved a soft landing, the uniqueness of this soft landing lies in the disagreement over whether the US economy has achieved a soft landing, no landing, or a hard landing.

In addition, traditional market risk indices are in a downward trend, and the complexity of geopolitical conflicts all have an impact on the global financial market.

Against this backdrop, long-term institutional investors are expected to increase their allocation of RMB assets. Looking at domestic institutions, as of the end of June this year, out of the 31 trillion yuan in book value of funds used by the insurance industry, only 2.1 trillion yuan was allocated to stocks, and 1.7 trillion yuan to funds, with a combined proportion of only about 12%. The proportion of bank funds allocated to equity assets is also low. At the end of 2023, the存续 scale of bank and wealth management subsidiary financial products was 26.8 trillion yuan, of which the存续 scale of equity and mixed products was less than 1 trillion yuan, accounting for only 3.5%.

Furthermore, in assisting overseas investors in investing in Chinese industries, equity investment funds have played a key role. The role of equity investment funds in serving enterprises "going global" includes helping Chinese enterprises complete overseas mergers and acquisitions and introducing international cutting-edge industrial development experience. He emphasized that equity investment funds are both the result of opening up and a booster of opening up.