Foreign capital increases investment in China's hard technology sector.

Recently, several international financial institutions have issued positive outlooks on the Chinese economy, increasing their investment in Chinese technology companies, accelerating investment deployment in China, and making hard technology a new focus. International investment banks: optimistic about investment opportunities in fields such as artificial intelligence. As of the end of the first quarter, Morgan Stanley held shares in 16 A-share companies with a market value exceeding 1 billion yuan, focusing on AI computing power and the optical communication industry chain. In the first quarter, Goldman Sachs entered the top ten shareholders of 894 listed A-share companies, with holdings of more than 100 million yuan in 20 individual stocks, including new entries in commercial aerospace and collaborative computing enterprises. International financial institutions: the stabilization and recovery trend of the Chinese economy is becoming more clear. Many international financial institutions, including Morgan Stanley and Deutsche Bank, have simultaneously raised their GDP growth expectations for China in 2026, believing that the trend of stabilization and recovery of the Chinese economy is becoming more clear. FTSE A50 Index adjustments, with multiple technology stocks included. After the market closed on June 3, the UK index compiler FTSE Russell announced the results of its quarterly index adjustments. Among them, the FTSE China A50 Index added five stocks: SMIC, Lanqiao Technology, Dongshan Precision, Shenghong Technology, and Weichai Power. MSCI MSCI announced the results of its May 2026 quarterly adjustments. The MSCI China A-share Index added 19 constituent stocks, mainly focused on AI computing infrastructure, optical communication, and high-end manufacturing, including Lightinthebox Technology, Changfei Fiber Optic, and Shengketongxin. Global attention to Chinese assets continues to rise. As of the end of May, the total market value of A-shares held by various overseas investors has exceeded 4 trillion yuan, with an increase of 1 trillion yuan compared to nearly 3 trillion yuan at the end of 2025.