Recently, the sovereign investment fund from the UAE – Mubadala Investment, opened an office in Beijing and currently has investments in about 60 companies listed on the A-share market. He is not the only one, and other financial companies from the Middle East are taking a serious look at China, Radio China reports.
At the same time, the thesis that foreign capital is leaving China is spreading in American and other Western media. What is the truth?
According to some experts, this “noise” is being made with different intentions. Washington views China as its biggest strategic rival and competitor, and attacks against it are focused in the economic sphere. Recently, a number of American politicians and the media have been talking about the decline of the Chinese economy in order to weaken the confidence of the outside world in it and reduce expectations for the country’s development, thus limiting its momentum.
But why do global capitals still look favorably on the Chinese market? The main reason is that China’s capital market has huge investment opportunities and development potential. China is the fastest growing economy, which is a solid foundation for the stable functioning of the capital market as well. China’s technological progress is creating a large number of new industries, and these in turn provide investment opportunities. Currently, Chinese stock market valuations are relatively low and investment prospects are relatively good.
China’s economy continues to recover after the pandemic, and the trend towards stable development has not changed. In addition, China continues its policy of further opening its market to foreign investors so that they can take even more optimal advantage of the opportunities it provides. The same applies to the capital market.