Foreign investors repeat Chinese technology again, but capital controls, and policy risks weigh

Singapore – While China is seeking to lure foreign capital amid an incoming investment, global investors looking for opportunities in the country are still wary of basic restrictions: Beijing iron grip on capital flows and lack of policy clarity.

For foreign investors, the message was from the summit of the Milkin Asia Institute in Singapore this week: China is still very large so that it cannot be ignored, but it controls it very and does not trust completely.

“It is a capital -controlled market. Everything is protected by depriving depositors of the freedom to remove their money,” said Charles Lee, founder and president of Micro Connect, a Hong Kong Financial Services Company. Lee is also the former CEO of the Hong Kong Stock Exchange.

Li at a committee at the Milkin event on Thursday, urging investors looking to China to “take this environment” in one case at the Milkin event on Thursday, urging investors looking to “really consider this environment.”

Beijing He sought to reverse the direction This year, by pledging more opening to the economy for foreign investment, with senior officials, including Prime Minister Lee Qiang, hold round table meetings for Treating foreign business concerns And strengthening a favorable capital environment.

However, it can be a hard battle with an atmosphere of anxiety among Milken loudspeakers this week.

On the sidelines of the event, Song Ma, a professor of finance and entrepreneurship at Yale University, said on the sidelines of the event, that the most dangerous to rely on the feelings of investors is lack of clarity on politics, Song Ma, Professor of Finance and Entrepreneurship at Yale University, on the sidelines of the event.

Foreign investors still have to move in a system under comprehensive organizational supervision and state participation, with unclear rules about reaching markets for some critical sectors and exit methods. “The state -backed funds still control a large amount of quality assets associated with technology and defense security.”

This uncertainty does not sit well with foreign institutional investors who follow strategies based on long -term investments.

“When you secure new private investments, you must have a good feeling of what this environment will look for 10 years,” said Adam Watson, a partner at Partners Capital, a $ 60 billion asset manager who works with family offices, institutions and volunteer individuals in the networks.

Watson said: “Exit options (now) are slightly limited on the basis that the inclusion in the United States has become more complicated,” adding that there are also concerns about the stability of some legal frameworks that investors abroad use to reach ground assets.

Partners Capital has shown its exposure to Chinese markets from about 8 % of its portfolios in 2018 to about 3 % since 2021, and Watson pointed out, pointing out “more aggressive government interference in the private sector” and “lack of convincing opportunities” in Chinese stocks before the last gathering.

According to Chinese payment data, the net foreign direct investment decreased The peak of $ 334 billion in 2021 To the flows out of about $ 154 billion in 2024, according to the Chinese data provider. This was the lowest level in more than two decades, indicating that foreign money was invested elsewhere.

Financing the US dollar from global investment investment in China and the private stock industry. A scale for newly used foreign foreign investment flows The Ministry of Commerce issued It showed a 12.7 % decrease year on August of this year.

Chinese stocks, Once it is seen as a non -investment by manyAttracting some foreign investors, driven by the rise of Deepseek to start technology and a series of sudden breakthroughs in high -tech industries.

Data from Morgan Stanley He pointed out that August witnessed the largest buying of Chinese shares through the global hedge funds in six months.

Meanwhile, the Hang Kong Index in Hang Singh has increased more than 35 % so far this year, at the pace of its largest annual growth since 2017, when it rose about 36 %. The Hang Seng Tech Index increased by 48 % throughout the year.

The CSI 300 Main Righteous Index has increased – more than 21 % this year – hovering near its highest levels more than three years.

It comes at a time when investors get rid of A dark economic image They put their faith in the intention of Beijing to increase support for the stock market and evaluate Chinese stocks.

China shocked calls this year Encouraging investors abroad to re -invest their profits Inside the country, and I entered the tax incentives To encourage them to do so.

Since more foreign investors weigh the capital returning to China, the government has an opportunity to support policy pledges and rebuild confidence, according to MA.

He added: “What China is doing next to opening access to the markets and improving its investment environment will be it is very important to keep foreign investors in the country in the long run.”