Global asset managers upbeat on Chinese stocks, boosted by tech innovation

A concept photo of China’s stock market Illustration: VCG

A number of international asset managers have become upbeat on Chinese stocks and assets, boosted by the stable development of China’s economy and technology innovation, with Greenwoods Asset Management Hong Kong becoming a latest example after it expressed a bullish view on China’s development prospects in the coming years. 

According to a recent filing with the US Securities and Exchange Commission, based on disclosed data, Greenwoods Asset Management Hong Kong held US stock positions worth $2.873 billion as of the end of the second quarter of 2025. Meta accounted for the largest position at 25.46 percent, followed by Chinese internet giant NetEase, which has long been a cornerstone of its US stock investments. The third- and fourth-largest holdings were Full Truck Alliance and Pinduoduo, stcn.com reported on Saturday night.

The company recently told high-net-worth clients that it is highly optimistic about China’s development prospects in the coming years. Amid changes in global geopolitics and industrial landscapes, the competitive strength of Chinese companies is undergoing a transformation — from being significantly underestimated and undervalued to gradually gaining recognition, and potentially attracting renewed global capital investment. Despite current macroeconomic pressures, many companies are demonstrating considerable investment opportunities at the micro level, according to the report.

The environment for China’s new generation of entrepreneurs is, in some ways, more favorable than that of the previous generations. For instance, today’s entrepreneurs are not merely content with creating products but strive to create better, more aesthetically appealing ones. China’s robust and comprehensive supply chains, vast pool of engineers and enhanced global distribution capabilities provide young, ambitious entrepreneurs with the potential for rapid success. We remain confident in the future, the company noted.

Cheng Yu, head of research at Allianz Global Investors Fund, told the Global Times that the Chinese market may remain volatile in the short term but that will not alter the upward trend in the third quarter. 

“Chinese stocks have entered a new major rerating cycle, driven by factors that will continue to play a role in the coming years. Additionally, the third quarter marks a period of comprehensive acceleration in the fundamentals of the technology sector. Therefore, we maintain our judgment that high-quality technology assets will deliver significant excess returns,” Cheng noted.

Yang Delong, chief economist of the Shenzhen-based First Seafront Fund, told the Global Times on Sunday that from the perspective of economic transformation, tech-related stocks represent the future direction of development, noting that the humanoid robotics sector could become China’s fourth major industrial track, following home appliances, smartphones and new-energy vehicles, with vast development potential.

In the first half of this year, the country’s overall positive growth significantly boosted confidence. If foreign trade continues to stabilize with recovering domestic demand, the economic fundamentals will become more solid. Additionally, the US Dollar Index has been declining this year, strengthening expectations for yuan appreciation and attracting more foreign capital into A-shares and Hong Kong stocks, creating opportunities for a structural bull market, Yang said.

S&P Global Ratings on Thursday maintained an “A+” rating and “stable” outlook for China’s sovereign credit. China’s Ministry of Finance on Thursday said that S&P Global Ratings’ latest report affirming a positive rating and stable outlook on China showed the rating agency’s recognition of the country’s economic resilience and prospects.

In the first half of 2025, major indicators of China’s economy performed better than expected, and the economy has demonstrated strong vitality and resilience as the Chinese government responded proactively to the rapidly changing external environment by implementing a series of coordinated policies, according to the ministry.

In the second half of the year, China will strive to achieve its annual economic and social development goals by continuing to strengthen macro policies, and it will intensify them at an appropriate time while maintaining policy continuity and stability, the ministry noted.

According to a recent survey published by US-based asset manager Invesco, an increasing number of sovereign wealth funds (SWFs) are renewing their interest in China, signifying a shift of sentiment toward the world’s second-largest economy. Sovereign wealth investors, including central banks, have cited attractive local returns, diversification benefits and China’s accelerating leadership in critical technologies as compelling reasons to engage, according to the survey.  

A significant majority of SWFs (59 percent) are expected to increase their China allocations over the next five years. Many sovereign investors believe that there is a strategic urgency to engage with China’s innovation-driven sectors, much like the focus they once placed on Silicon Valley, the survey showed.

In the second half of the year, A-shares and Hong Kong stocks are likely to continue their bull market trend, with more investment opportunities. Investors favoring growth stocks can position themselves in technology sectors such as innovative pharmaceuticals, humanoid robotics and intelligent driving. 

Meanwhile, those seeking stable returns can focus on undervalued, high-dividend sectors like banking, utilities and energy. “This year, all types of investors can find investment directions that suit their preferences,” Yang noted.