Foreign investors' rising interest in Chinese mainland equities — their exposure to A shares has increased recently — can be attributed to the obvious value of the stocks and China's continued efforts to optimize its capital market structure, said market mavens and experts.
China has issued 24 new guidelines to attract more global capital and further optimize the country's business environment for multinational corporations.
Data from the State Administration of Foreign Exchange on Wednesday showed that foreign investors bought a net worth of $27.7 billion in onshore stocks in January, marking the highest single-month reading on record.
China's equities are increasingly attracting international investors due to the prospect of the country's stabilizing economic growth when the capital market is overcast elsewhere.
To attract FDI, the nation will strengthen efforts to expand high-level opening-up, improve supportive policy measures and offer better services for foreign investors.