International investors are increasingly shifting their attention to Chinese stocks amid the continuous rebound of the nation's stock market, driven by the country's policy support to bolster economic growth, its global leadership in certain tech segments like humanoid robotics, and demand for diversification amid a volatile international environment, according to recent reports from several foreign financial institutions.

"Over 90 percent of the investors we had meetings with [in the US] expressed explicit willingness to increase their exposure to China, the highest level we have observed since China's equity market peaked out in early 2021," Laura Wang, equity strategist with Morgan Stanley, wrote in a note sent to the Global Times on Thursday.

According to the note, US investors' interest has extended from American Depositary Receipts - a mechanism through which Chinese companies can trade in the US market - to the stock market in the Hong Kong Special Administrative Region and the onshore A-share market.

"US investors' relocation back to China is only just starting," Wang said. The key reasons include China's dominant global leadership in certain tech segments such as humanoid robotics and biotech, policies to stabilize the economy, the improving liquidity situation in the China market as well as demand for investment diversification.

In addition, a new Goldman Sachs report showed that in August, global hedge funds' net purchases of Chinese stocks reached the highest level since September 2024, with gross positions in China hitting a two-year high.

"Thanks to the resilience of China's economy, the remarkable performance of its capital markets has attracted the sustained inflow of international capital, providing non-negligible investment opportunities for international investors," Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Thursday.

A survey of nearly 300 active global emerging markets funds (GEMs) conducted by HSBC Global Investment Research found that China now accounts for almost 28 percent of GEMs' fund portfolios, up from 22.5 percent in August 2024, according to HSBC.

Chinese stocks closed higher on Thursday, with the benchmark Shanghai Composite Index up 1.65 percent to 3,875.31 points, while the Shenzhen Component Index closed 3.36 percent higher at 12,979.89 points. The combined turnover of these two indices stood at 2.44 trillion yuan ($342.48 billion), up from 1.98 trillion yuan on the previous trading day.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 5.15 percent to close at 3,053.75 points on Thursday.

Schroders Fund Management (China) Co maintained a positive outlook on China's A-share market. According to a recent note sent to the Global Times, the company noted that China's major economic data reflect stable and improving growth momentum, while stock valuations remain within an acceptable range.

As corporate savings continue to be slashed and household deposits are massively moving into the financial markets, there is great potential for incremental investment in China's stock markets, it said, pointing to investment opportunities in globally competitive sectors including technology, vehicles and high-end manufacturing.

At a symposium on planning for the country's capital market during the 15th Five-Year Plan period (2026-30), Wu Qing, chairman of the China Securities Regulatory Commission, said that more efforts will be made to consolidate the positive momentum of the capital market, and accelerate a new round of capital market reform and opening-up driven by comprehensive reforms in investment and financing in order to enhance the attractiveness and inclusiveness of the country's capital market.