A notable shift in global capital flows is underway, with international investors increasingly turning their attention back to China's capital markets. 

After a prolonged period of outflows, these markets have experienced sustained foreign inflows since early summer, signaling renewed confidence in Chinese assets.

Foreign institutions are growing increasingly optimistic about China's capital markets. 

Morgan Stanley noted that after two consecutive months of net inflows in June and July, overseas capital is expected to further accelerate its entry into Chinese markets following the summer months. 

Nomura Securities observed that emerging market funds significantly reduced their allocation to Indian equities in July while substantially increasing their exposure to markets like China and South Korea.

Hermitage Capital believes the current bull run is just the beginning. Against the backdrop of strong global equity rebounds, international capital is returning to the Chinese market, the firm stated, adding that valuations remain attractive.

With China's financial markets continuing to open up and regulatory clarity improving, foreign investors are increasingly positioned for a sustained recovery in Chinese equities.