Foreign investors express confidence in Chinese market

As China commemorates the 45th anniversary of the introduction of its reform and opening-up policy, finance experts have highlighted the nation's significant growth potential.

According to the State Council Information Office, between 2013 and 2021, China's average contribution to global economic growth surpassed 30 percent, solidifying its role as a primary driver of global expansion.

Shi Bin, who heads China equities at UBS Asset Management, underscored the progress China has made in the past 45 years, emphasizing the importance of the ongoing economic reform and opening-up in attracting foreign technology and investment. 

Despite the current economic "soft patch," Shi pointed to the global growth opportunities for Chinese companies.

"We're looking at some of these names that already have a proven track record, investing in overseas market," said Shi.

"These are the names most likely to succeed in the long run. In the future, you're going to see more Chinese brands in the overseas markets."

As an international financial center, Hong Kong remains a crucial gateway for global investors seeking to understand the Chinese markets. 

The city, a special administrative region of China, serves as the mainland's dominant gateway for foreign investment and offshore capital raising. 

Representatives from major stock exchanges in the mainland, including the Shenzhen and Shanghai stock exchanges, expressed their commitment to further promoting interconnection between domestic and overseas markets, implementing high-level institutionalized opening-up, and enhancing the service system for listed companies and overseas investment institutions.

A recent investor exchange event organized by the China Association for Public Companies in Hong Kong saw the participation of nearly 30 domestically listed companies and around 140 overseas investment institutions.

Chen Xinjian, the president of the Industrial Bank and a representative of the participating listed companies, spoke about the rapid development achieved through positive interaction with the capital market. 

He said he envisions value-based enterprises playing an increasingly vital role in China's economic development during this new stage of promoting high-quality development.

Another pivotal trend is the growing importance of ESG, or environmental, social and governance factors. 

Hong Kong, as part of its commitment to sustainability, is proposing mandatory climate-related disclosures based on the guidelines issued by the International Sustainability Standards Board for all listed companies, an initiative that is expected to take effect in 2025. 

Nana Li, the head of Sustainability & Stewardship Asia-Pacific at IMPAX Asset Management, highlighted the opportunity for China to make significant strides in ESG, citing ongoing discussions at public levels and the importance of training and dialogue on these non-financial issues with stakeholders for long-term success.

"Given that ESG is a new thing for most Asian markets, China actually has a good opportunity to make a move," said Li. 

"There have been a lot of discussions already on ESG-related issues at the public level."