China's economy is entering a stage where structural reforms and targeted policy support are shaping a more diversified and accessible financing environment. For international investors, this presents clear opportunities to participate in growth sectors and benefit from evolving capital market mechanisms.

Corporate financing in China is gradually shifting toward a more balanced structure. Direct financing through equity and bond markets, currently around 30% of total corporate funding, is expanding steadily, providing broader channels for long-term capital. Recent measures to enhance listed company quality, encourage dividend distributions, and attract stable capital flows signal a more investor-friendly environment.

For foreign investors, these developments translate into growing opportunities to access Chinese equities, bonds, and structured financial products, particularly in sectors such as technology, healthcare, and industrial innovation.

China's households are increasingly diversifying their asset holdings beyond real estate, allocating more into market-based financial instruments. This shift supports deeper liquidity in domestic equity and bond markets, strengthening market stability and creating a broader foundation for international investors seeking long-term engagement.

A series of targeted measures underscores areas of strategic opportunity:

• Accelerated government and local bond issuance is funding key infrastructure and strategic projects, opening channels for contractors, service providers, and financial intermediaries.

• Proactive monetary measures, including liquidity support and adjustments to lending rates, aim to enhance credit accessibility and reduce financing costs.

• Capital market support tools, such as expanded access to swap facilities and structured interventions by Central Huijin Investment Ltd., provide confidence for investors and ensure orderly market operations.

• Consumption and real estate initiatives—from mortgage rate adjustments to trade-in subsidy programs—signal growing domestic demand, benefiting consumer goods, technology, and financial services sectors.

• Trade facilitation and export support improve the operational environment for foreign exporters, logistics providers, and cross-border service firms.