Foreign institutional investors conduct intensive research on A-share companies; technology sector becomes a key focus

Topic: Volatility doesn’t change the “spring rush” outlook; institutions advise holding through the holidays

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Entering 2026, foreign-invested institutions’ enthusiasm for conducting research in A-shares remains undiminished. According to Wind Information, as of February 9, there had been 569 research visits to A-share listed companies in total by 224 foreign-invested institutions within the year, including well-known firms such as Morgan Stanley, BlackRock, Goldman Sachs, and Citigroup.

In addition, multiple foreign-invested institutions have recently released research reports that are bullish on China’s stock market. For example, Goldman Sachs maintains a “Overweight” rating for Chinese stocks and forecasts that the China index and the CSI 300 will rise by 20% and 12%, respectively. UBS states that its view on Chinese stocks is “attractive,” and that this year’s earnings growth expectation for the MSCI China Index will rebound sharply from last year’s 2.5% to 13.6%, mainly driven by technology stocks.

Judging by the targets of foreign-investor research, Huaming Equipment, Investronic Innovative, and Inovance Technology rank in the top three among research lists. In addition, companies such as Optek, Yihe Daring, Anji Technology, CR Microelectronics, and Sietwei have attracted more than 20 foreign-invested institutions to come for research. This shows that foreign-investor research mainly focuses on areas such as semiconductors and robotics.

In the offices of the Chief Investment Officer (CIO), UBS Wealth Management, it is said that the Chinese market has growth and return potential. China continues to promote technological innovation and self-reliance and self-improvement, creating a favorable business environment for companies. At the same time, positive factors such as healthcare companies “going global,” the emergence of new consumption models, and the modernization of the power grid are expected to benefit sectors including healthcare, consumer industries, materials, and power equipment.

Ma Lei, Chief Investment Officer for Mainland China and Hong Kong at Invesco, says: “Looking ahead to 2026, we remain optimistic about China’s stock market. Improved fundamentals and long-term growth momentum are expected to build a more sustainable structural growth cycle.”

When discussing investment opportunities in China’s stock market, Ma Lei believes there are three key areas. First is industrial upgrading. Key industries such as electric vehicles, pharmaceuticals, and automation are expected to drive growth in the next stage. Companies with solid and steady R&D capabilities can seize the market’s demand for advanced products and solutions. Second is the AI trend. DeepSeek, released in early 2025, shows that China is capable of providing large language models that combine cost-effectiveness with high performance, and it also signals that China has become a strong competitor on the global AI track. China has one of the largest internet user bases in the world, relatively low energy costs, and the basic conditions to support large-scale AI development and deployment. In addition, abundant talent reserves, massive data resources, and efficient automated scaling capabilities give China a competitive advantage in turning AI innovation into concrete productivity improvements. Third is consumption evolution. Influenced by changes in population structure and the ongoing evolution of consumer preferences, China’s consumer market may undergo a major transformation in the future. There will be more and more young people allocating their budgets to service-based and IP-based products, including online games, travel, entertainment, and social media. It is expected that related industries will see more excellent companies emerge.

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