Several global financial institutions have raised China prospects and increased
allocations to Chinese technology firms, accelerating onshore investment. MSCI
has formally added 19 A-shares to the MSCI China Index, concentrated in optical
communications, computing power and high-end manufacturing, which eases foreign
access to these names. Foreign holdings of A-share free-float market value
exceed 4 trillion yuan and year‑to‑date inflows have been steady via various
channels. Investment banks including Morgan Stanley and Deutsche Bank have
recently lifted their 2026 China GDP forecasts; many cite China’s core
competitiveness in tech innovation as the main rationale for increasing
exposure.
