Multiple Foreign Institutions Release 2025 Investment Outlook: Bullish on Chinese Assets

As the year-end approaches, several foreign institutions are ramping up their efforts to expand in the Chinese market through business expansion and capital increases. Additionally, many of these institutions have highlighted China in their 2025 global investment outlooks, with a consensus that A-shares remain among the most attractive markets globally.

On December 21, Fidelity International's wholly-owned subsidiary in China, Fidelity Fund Management (China) Co., Ltd. (referred to as "Fidelity Fund"), announced the launch of its first Fund of Funds (FOF). The Fidelity Renyuan Stable Three-Month Holding Mixed FOF will be open for subscription from January 6 to January 17, 2025. This product aims to leverage active asset allocation and fund selection to uncover diversified global investment opportunities for Chinese investors, enabling long-term, stable asset growth.

Huang Xiaoyi, Managing Director of Fidelity International in China and Chairwoman of Fidelity Fund, remarked:

*"China has always been a key strategic market for Fidelity. We are delighted to introduce our multi-asset investment strategies to Chinese investors through the launch of our first FOF product. This marks an important step in Fidelity's long-term strategic expansion in China."*

According to the National Enterprise Credit Information Publicity System, at least two foreign wholly-owned public fund institutions have significantly increased their capital in December alone:

- On December 3, Allianz Global Investors completed a capital increase for its fully-owned subsidiary Allianz Fund Management Co., Ltd. (referred to as "Allianz Fund"), raising its registered capital from 300 million RMB to 600 million RMB. Allianz began public fund operations in China earlier this year in April.

- On December 17, Neuberger Berman's subsidiary in China, Neuberger Berman Fund Management (China) Co., Ltd., raised its registered capital from 420 million RMB to 550 million RMB—marking its fourth capital increase since entering the Chinese market.

Shen Liang, General Manager of Allianz Fund, told *Securities Daily*:

*"In the coming years, China will remain one of the most critical growth markets globally. The asset management industry in China holds immense potential, supported by the Chinese government's consistently open attitude towards foreign enterprises. This capital increase reflects Allianz's long-term commitment to the Chinese market and our confidence in the future development of China's capital and asset management sectors. We also plan to introduce a series of innovative and systematic investment solutions to meet the increasingly diverse needs of Chinese investors."*

Beyond business expansion, other foreign institutions have expressed strong bullish signals toward Chinese assets in their 2025 global investment outlooks.

For instance, Invesco, a NYSE-listed company, noted in its *2025 Investment Outlook* published on December 18 that increased policy stimulus in China could enhance economic growth prospects, generating positive spillover effects for global markets and equities.

Zhu Liang, Deputy General Manager and Investment Director at AllianceBernstein, also expressed optimism about the A-share market:

*"A-shares remain one of the most attractive markets globally. Current valuation levels indicate a high probability of investment success in A-shares."*

In terms of specific sectors, foreign institutions generally favor consumption, technology, and emerging industries with competitive advantages.

Jochen Breuer, a Fund Manager at Fidelity International, suggested:

*"Investors with a preference for the Asian region should consider the consumer staples sector. These companies focus more on domestic markets, offering defensive characteristics and attractive valuations compared to other industries. Many consumer segments in China are poised for a profitability recovery, driving valuation rebounds and offering compelling dividend yields."*

Morgan Stanley Fund Management (China) Co., Ltd. highlighted two key areas for continued focus:

1. AI Applications: In recent years, the rapid development of AI computing power has fueled robust growth for related listed companies. This trend is expected to continue in 2025, with the foundation for AI infrastructure becoming increasingly mature. While groundbreaking innovations may take time, incremental innovations are likely to emerge frequently, maintaining high levels of interest in AI applications.

2. China's Emerging Industries with Competitive Advantages: Drawing parallels from industrial development patterns in other countries, competitive industries from manufacturing powerhouses often achieve significant breakthroughs in overseas markets, creating long-term advantages. China currently boasts several such competitive industries with expanding global influence.

Foreign institutions' renewed focus and strategic expansions underscore their confidence in China's economic and market prospects, further solidifying its position as a global investment hotspot.