Foreign investment institutions collectively bullish on the Chinese market, A500ETF fund trading active.

On May 20th, the trading volume of the A500ETF fund was active, with a 0.11% increase by the time of writing and a trading volume of 9 billion yuan. Several foreign institutions have stated that global investors' confidence in the Chinese market is increasing. Joohee An, Chief Investment Officer of Future Assets Global Investments Limited, stated that foreign institutions are gradually increasing their allocation of Chinese assets, with limited downside risks in corporate profits and the market expected to undergo a price reevaluation. Shen Li, Managing Director of Morgan Stanley and Head of Onshore Equities Business in China, mentioned that overseas investors, especially long-term capital, have shown high patience and enthusiasm, with funds flowing in overall since the fourth quarter of 2024. Shen Li also noted that the P/E ratio of the Shanghai and Shenzhen 300 Index is around 12 times, and the earnings expectations of the MSCI China Index have returned to a relatively objective level, with component companies in a relatively advantageous position in dealing with tariffs. The valuation attractiveness of the Chinese market remains significant, and investors can leverage the A500ETF fund and its associated funds for positioning.