AsianFin -- After two years on the sidelines, global investors are reassessing mainland China's stock markets, fueling a sharp rise in equity issuance, which doubled in the first quarter compared to a year ago, according to bankers.
Loosening regulatory scrutiny on major tech firms and the rise of disruptive AI software developer DeepSeek are proving strong incentives—even for overseas investors wary of ongoing Sino-U.S. trade tensions, bankers and advisors noted.
Chinese companies raised $16.8 billion through equity issuance in Q1, a 119% increase from the same period last year, according to LSEG data.
“The investor mindset has shifted. While many once viewed China as uninvestable, there’s now a growing sentiment that the market is undergoing a re-rating,” said James Wang, head of Asia ex-Japan Equity Capital Markets at Goldman Sachs.
"Risk perception remains, but the focus has shifted toward identifying opportunities. This is particularly evident among long-term investors, whose presence continues to strengthen."
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