U.S.-China Trade Progress Boosts Overseas Investor Appetite for Chinese Equities by 80%

During the 2025 Global Investor Conference, Morgan Stanley's Executive Director and Head of China Onshore Equity Business, Shen Li, noted that the progress in U.S.-China trade negotiations has surpassed expectations. This has boosted the risk appetite of international investors, with over 80% of participants at the Morgan Stanley China B.E.S.T. conference expressing a likelihood of increasing their exposure to Chinese equities in the near term. Shen Li underscored the significant valuation appeal of the Chinese market, which continues to attract overseas investors. These investors are particularly optimistic about the growth potential of companies in technology or artificial intelligence research and development, new consumption, and high-end manufacturing sectors, and are actively expanding their investments in these areas.

Currently, the A-share market comprises over 5,000 listed companies, covering various sectors of the national economy. This reflects China's comprehensive industrial structure and rapid transformation and upgrading. From a valuation perspective, the current A-share market valuation remains relatively low, with the Shanghai and Shenzhen 300 index's price-to-earnings ratio at 12.6, significantly lower than major overseas market indices. This highlights the market's configuration value. Recently, the China Securities Regulatory Commission released the revised "Management Measures for Major Asset Restructuring of Listed Companies," which increases support for the asset restructuring of listed companies. This will continue to guide listed companies to enhance their investment value through cash dividends, share repurchases, mergers and acquisitions, and other means, fostering a group of high-quality, vibrant listed companies and providing more high-quality investment targets for global investors.

In terms of investor returns, in 2024, A-share listed companies implemented a total of 2.4 trillion yuan in dividends and 147.6 billion yuan in share repurchases, both setting new historical records. An increasing number of companies are distributing dividends multiple times a year, with the dividend yield of the Shanghai and Shenzhen 300 index approaching 3.6%. This enhances the stability and predictability of returns to investors.