China Asset Investment Appetite Rises Among Global Investors

Global investors are showing renewed interest in Chinese assets as rapid technological advances and lower valuations draw attention back to the world’s second-largest economy, according to JPMorgan research.

The China asset investment survey found that 57% of investors were considering exposure to China, up from 51% a year earlier.

Kwang Kam Shing, JPMorgan’s chairwoman for North Asia, said foreign investment allocations into Hong Kong and mainland China remain historically low, leaving room for greater diversification into Chinese markets.

The China asset investment rebound is being driven partly by growing interest in sectors including artificial intelligence, robotics, renewable energy, electric vehicles and biotechnology, where Chinese firms continue demonstrating strong research capabilities and cost advantages.

Hong Kong-listed companies currently trade at around 13.5 times forward earnings, compared with about 21 times for the S&P 500, highlighting valuation gaps attracting international investors back to Chinese equities.