Foreign investors continue to display strong confidence in China's capital market, as evidenced by their increased stakes in various listed companies. Recent half-year reports have highlighted that over 70 firms have Qualified Foreign Institutional Investors (QFIIs) among their top shareholders, accumulating a significant shareholding value of approximately 6.8 billion yuan.

According to the Securities Times, this trend underscores a broader commitment from foreign institutional investors, who are now prominent players among the top 10 tradable shareholders of these companies. This shift indicates not only their trust in the market's stability but also an active participation in its potential growth.

The QFII program plays a crucial role in facilitating this foreign investment landscape, allowing licensed foreign investors to engage directly in China's domestic capital market. As more companies release their half-year financial reports, the evidence of foreign engagement grows increasingly clear.

Recent data from financial information service Wind reveals that out of the 663 A-share listed companies that have reported their results, over 430 have shown year-on-year growth in net profits. Notably, 111 of these companies saw their profits double, illustrating a strong resurgence, particularly within the manufacturing and technology sectors.

Experts believe that this increasing foreign interest can be attributed to a variety of factors. Hu Qimu, deputy secretary-general of the Forum 50 for Digital-Real Economies Integration, explained that investors were initially driven by expectations. However, as improvements in the real economy became apparent, a consensus formed within the market, encouraging larger investments.

Additionally, amidst the backdrop of global geopolitical tensions, capital is naturally drawn to avenues of predictable growth. Hu pointed out that China's favorable policies and supportive business environment have played a pivotal role in attracting more foreign investments this year.

After China's recent half-year economic report, several foreign institutions have revised their growth forecasts for China in 2025. For example, UBS has increased its projection by 0.7 percentage points, while Nomura has made a slight adjustment of 0.1 percentage points, as reported by Xinhua News Agency.

Back in June, Citi had already updated its GDP growth forecast for China from 4.7 percent to 5 percent, indicating a positive outlook among foreign financial institutions.

China has consistently introduced a series of supportive measures aimed at opening its markets further, notably reducing the negative list for foreign investments. By 2024, all restrictions on manufacturing are set to be eliminated.

As these policies come into effect, it is anticipated that even more foreign enterprises will actively engage in China's capital markets, thereby participating in the diverse development opportunities that the country offers.