Foreign institutions have maintained a strong interest in researching A-share companies as 2026 begins. According to Wind data, as of February 9, a total of 224 foreign institutions have conducted 569 research visits to A-share listed companies this year. Notable participants include prominent global firms such as Morgan Stanley, BlackRock, Goldman Sachs, and Citigroup.
In addition, several foreign institutions have recently published research reports expressing optimism toward Chinese equities. For instance, Goldman Sachs has maintained an "overweight" rating on Chinese stocks and forecasts gains of 20% and 12% for the China Index and the CSI 300 Index, respectively. UBS has stated a favorable view on Chinese equities, projecting that earnings growth for the MSCI China Index will rebound sharply from 2.5% last year to 13.6% this year, largely driven by the technology sector.
In terms of research targets, Huaming Equipment, Insta360, and Inovance Technology ranked as the top three most-researched companies by foreign institutions. Other companies, including Opto-Med, YHGlobal, Anji Technology, China Resources Microelectronics, and Smartsens, each attracted research interest from more than 20 foreign institutions. This indicates that foreign research activities are primarily concentrated in sectors such as semiconductors and robotics.
UBS Global Wealth Management’s Chief Investment Office (CIO) highlighted that the Chinese market offers both growth and return potential. China’s ongoing emphasis on technological innovation and self-reliance has created a favorable business environment for enterprises. Additionally, opportunities such as healthcare companies expanding overseas, the rise of new consumption models, and grid modernization are expected to benefit industries including healthcare, consumer goods, materials, and power equipment.
Looking ahead to 2026, Mike Shiao, Chief Investment Officer for Greater China at Invesco, expressed continued optimism toward the Chinese stock market. He noted that improving fundamentals and long-term growth drivers are likely to support a more sustainable structural growth cycle.
Regarding investment opportunities in Chinese equities, Shiao identified three key areas. The first is industrial upgrading, where key sectors such as electric vehicles, pharmaceuticals, and automation are expected to drive the next phase of growth. Companies with strong research and development capabilities are well-positioned to meet the demand for advanced products and solutions. The second is the artificial intelligence (AI) trend. The launch of DeepSeek in early 2025 demonstrated China’s ability to develop cost-effective, high-performance large language models, positioning the country as a strong competitor in the global AI race. China benefits from one of the world’s largest internet user bases, relatively low energy costs, and the foundational conditions needed to support large-scale AI development and deployment. Its vast talent pool, extensive data resources, and efficient automation scalability provide a competitive edge in transforming AI innovation into tangible productivity gains. The third area is the evolution of consumption. Driven by demographic shifts and changing consumer preferences, China’s consumer market is likely to undergo significant transformation. Younger generations are increasingly allocating their budgets to services and intellectual property-based products, including online gaming, travel, entertainment, and social media. This trend is expected to give rise to more high-quality companies in related sectors.
Comments