Global investors confident in Chinese assets

China's stock market is witnessing a strong resurgence, with the total equity issuance reaching $16.8 billion in the first quarter of 2025, a 119 percent increase compared to the same period last year, Reuters cited LSEG data as saying. 

This significant rebound highlights a shift in investor sentiment, with growing confidence in the country's economic recovery and market potential.

A key factor driving this renewed optimism is the revaluation of Chinese technology stocks, spurred by the rise of DeepSeek, a leading AI software developer in China. 

"DeepSeek has led to a revaluation of technology stocks, as well as a broader revaluation of Chinese assets," said Wang Xinjie, chief investment strategist at Standard Chartered China's Wealth Solutions Division, while emphasizing DeepSeek's impact. 

Wang said the market, especially foreign investors, has been paying increasing attention on Chinese tech stocks.

China's strong innovation ecosystem is another major draw for investors. 

Duan Bing, an analyst for China's technology and telecom sector at Nomura, highlighted the long-term growth potential of the country's tech industry in an interview with China Media Group. 

"We believe China's technology sector has robust growth momentum and a promising future. The country provides fertile ground for tech development, with a vast base of enterprises and consumers who are highly receptive to new technologies and applications. This has been a major driver of institutional investors' renewed interest in Chinese tech assets."

Beyond the stock market, China's broader economic outlook remains stable, further bolstering investor confidence. The Organization for Economic Cooperation and Development, or OECD, revised its forecast for China's economic growth, projecting a 4.8 percent increase in GDP for 2025 in its latest economic outlook report, up from its previous estimate of 4.7 percent in December 2024.

Goldman Sachs Chief China Economist Shan Hui told CNBC that recent economic data is "good enough" to assure investors that China remains on track to achieve its GDP growth target of around 5 percent in 2025.