Recently, Li Bin, Deputy Director and spokesperson of the State Administration of Foreign Exchange, answered a reporter's question about the foreign exchange situation in February 2025, saying: "In February, foreign investors increased their net holdings of domestic bonds and stocks by a total of 12.7 billion US dollars." At the same time, the latest data from the Korea Securities Depository and Clearing Institute shows that the monthly trading volume of Korean investors investing in mainland China and Hong Kong stocks in February reached 782 million US dollars, nearly doubling the month on month growth and reaching a new high since August 2022, far exceeding the investment scale of Korean investors in European and Japanese stock markets during the same period. The author believes that behind this series of "real gold and silver" data, there is a collective vote by foreign capital on the Chinese capital market through practical actions, releasing a triple signal. The trend of China's economic recovery and improvement has boosted market confidence. Behind the net increase in foreign investment is confidence in the prospects of the Chinese economy. In 2024, China achieved its economic growth target of 5%, ranking among the world's major economies in terms of growth rate. As the world's second-largest economy, China's position in the global economy is becoming increasingly prominent. It is not only a key growth pole of the global economy, but also plays an important engine role in global trade, investment, supply chain, international cooperation, and other aspects. Since the beginning of this year, the combination of macro policies has achieved significant results, with the growth rate of major indicators steadily increasing and new driving forces steadily improving the quality of development, once again demonstrating the strong resilience of the Chinese economy. According to data from the National Bureau of Statistics, the added value of industries above designated size increased by 5.9% year-on-year in the first two months of this year, with the added value of equipment manufacturing industry growing by 10.6%. As an important engine for developing new quality productivity, innovative products such as "artificial intelligence+" are accelerating, promoting the transformation of production methods and driving the rapid development of high-end manufacturing. The above data also tells foreign investors that China's economic growth is sustainable. Therefore, the increase in foreign investment is actually a vote of confidence in China's future economic growth. Secondly, the revaluation of Chinese assets has accelerated the reallocation of global capital. Since the beginning of this year, China has made breakthrough progress in fields such as artificial intelligence big models, humanoid robots, quantum communication, and semiconductors. These technological innovations not only enhance the attractiveness of Chinese assets in the global market, but also provide new investment opportunities for global capital, and have triggered a reassessment of the value of Chinese assets, especially technology stocks, by international capital. Several foreign institutions have raised their ratings on Chinese stocks and stated that now is the best time to advise global investors to increase their asset allocation to Chinese stocks. JPMorgan believes that the revaluation of Chinese technology stocks will continue, with an average annual return rate of 7.8% over the next 10 to 15 years. The revaluation of Chinese assets is not only an inevitable result of its own economic transformation, but also an active choice for global capital restructuring. From "low allocation" to "over allocation", Chinese assets have ushered in a "rediscovery" of global value, which has also accelerated the adjustment of the global capital allocation map. Thirdly, the "magnetic attraction" of Chinese assets has further strengthened. One important driving factor for the net increase in foreign investment is the further enhancement of the "magnetic attraction" of Chinese assets to global funds. This can be analyzed from the perspectives of market valuation and policy. From the perspective of valuation, the current A-share valuation is at a historical low, with a P/E ratio of around 12 times for the Shanghai and Shenzhen 300 Index, significantly lower than major global markets. This provides a good investment opportunity for global capital, which is an important factor in attracting accelerated foreign investment inflows. From a policy perspective, the high-level opening up of the capital market to the outside world has been continuously promoted, and a series of practical and efficient policy measures have been introduced, including supporting qualified foreign-funded institutions to establish institutions in China, relaxing the restrictions on the sales ratio of Hong Kong mutual recognition funds in foreign countries, and expanding channels for foreign investment in the securities market. These policy measures have further optimized the investment environment for foreign capital, enhanced their expectations of market stability, thereby increasing their investment willingness and increasing their allocation of Chinese assets. (New Society)