GuShiio.com 
GuShiio.com Finance, interpreting politics and economics, hello everyone, I am Xiuqiu. I didn’t expect that just after the Chinese New Year, foreign capital’s attitude towards China immediately changed 180 degrees. WisdomTree Asset Management Company gave us the “Top Ten Chinese Technologists”. Jeff Weniger, head of its stock strategy, said that China’s “Top Ten Technological Stocks” have formed a competitive situation with the “Seven Technological Giants”, such as BYD and Geely challenging Tesla, Alibaba and JD.com challenging Amazon. He also said that the top ten Chinese technologists can only be described as crushing the seven giants of the US stock market, and this trend began in the middle of last year. This evaluation is just like saying that the top ten Internet companies in China are like a group of “academic masters” who suddenly rose up, surpassing the seven leading US stocks, which caught us off guard!
Why are foreign investors suddenly optimistic about China?
It is mainly because of this wave of operations in China’s economy, which can be said to be “showing resilience in transformation and playing upgrades in development”. Once the new quality productivity is launched, the economic growth rate is expected to pick up.
Moreover, this year China has made breakthroughs in fields such as artificial intelligence, such as the rise of DeepSeek, which has attracted global attention and increased the attractiveness of Chinese assets. The popularity of DeepSeek’s low-cost model overseas and the expansion of its application depth are important signs of the recognition of Chinese intellectual property rights, showing China’s new breakthroughs in high value-added fields.
In addition, this year’s wave of China’s policy packages has really stunned foreign capital. The government has launched a three-hit combo of “lowering interest rates + distributing money + loosening restrictions on foreign capital”, which directly makes foreigners unable to do anything. This wave of operations is even more ruthless than the full reduction on Double Eleven!
Goldman Sachs and UBS have said: What is taken out of this policy toolbox is not a tool, but a treasure bag of Doraemon! UBS’s brother Meng Lei even predicted that the profit of the CSI 300 could increase by 6%, which is more stable than the profit growth rate of the milk tea shop downstairs from my house.
Moreover, the current price-earnings ratio of A-shares is lower than the historical average. Foreign investors saw it and their pupils were shocked: this price is more cost-effective than Pinxixi’s cut! The MSCI China Index is 52% lower than the US stock market, which is equivalent to buying a Huawei phone and giving away Maotai. Wouldn’t it be a big loss if you don’t buy at the bottom? Invesco’s Ma Lei hinted wildly: If you don’t buy it now, it will rise by 100!
In the past, foreign investors always complained that A-share companies were “PPT war gods”, but this year the style suddenly changed. Electric cars beat Tesla, 5G base stations were spread all over Africa, and even Internet giants began to pay dividends and repurchase crazily!
Goldman Sachs calculated: In 2025, the profit growth rate of the MSCI China Index will be 7%. How can this be called stock speculation? It’s simply a win without doing anything!
Deutsche Bank has already said that “A-shares will exceed last year’s highs”, which is even more crazy than the rap host.
UBS even named online retail and healthcare, which is comparable to Li Jiaqi shouting “Buy it! Buy it!” A certain institution also secretly revealed that China’s patent applications account for 50% of the world. How can this be called R&D? It is clearly a “hexagonal warrior” in the technology industry.
Deutsche Bank said: “China’s economic growth rate is twice that of developed countries!” Translated into human language, it means that other people’s children get 60 points in the exam, and Chinese academic masters directly hand in the paper and say “this question is too easy”
But every time I see those so-called “good news”, my heart will automatically turn on the “fear mode”, as if I saw the stock market version of “The Grim Reaper”. Foreign capital shouts “optimistic about the Chinese stock market”, but the actual action is like going to the supermarket to buy discounted eggs, picking and choosing, buying less and running fast. The current market is supported by southbound funds, just like the hard-working worker who works overtime until late at night every day and silently shoulders the company’s KPI. The question is, how long can this “market support” last? After all, everyone knows the routine of foreign capital: fast in and fast out, and run away after getting the wool. The market trend in October last year is the best example. They dare to invest because the domestic policy is as stable as the hands of an old father. The government’s bottoming out makes them feel at ease. As for how the stock price will be, it depends on how excited the stockholders are.
Let’s talk about Mr. Buffett. He is an “old fox” in the investment industry. Berkshire’s cash reserves have hit a new high recently. What does this mean? It means that Buffett feels that the market risks are so great that even he dare not make a move easily. You know, Buffett is not the kind of keyboard warrior who shouts “buy the bottom” every day. His sense of smell in the face of crisis is sharper than a dog’s nose. So, when we see those “good news”, don’t be excited like a kid who won the lottery, calm down! Those who can survive long in this market are not gamblers, but those who know how to plan ahead and engrave risk awareness in their bones. After all, the stock market is like the rivers and lakes, and survival is the hard truth!
Foreign investors are collectively calling for this wave of support, to put it bluntly, because they think China is now “cheap + capable + policy support”. But everyone should remember that institutions’ support for stocks is like an ex-girlfriend asking for a reunion. It sounds touching, but it’s deadly in practice! When referring to it, you should bring your own anti-scam filter and be careful of these institutions’ “rainbow fart” routines! After all… you know
