Amid Chinese shares' recent rise, foreign investors are casting votes of confidence in China's stock market.

On Tuesday, the Shanghai Composite Index reached 3,746.67 points during the trading session, its highest level in almost a decade.

In the disclosed H1 2025 reports as of Monday, qualified foreign institutional investors (QFIIs) appeared in the list of top-10 shareholders of over 70 listed companies in China's A-share market, with a combined market value of their holdings totaling approximately 6.8 billion yuan ($950 million).

QFIIs' portfolio preferences span sectors such as automobiles, pharmaceuticals and biotechnology, food and beverages, and hardware equipment.

In their latest outlooks, foreign institutions such as Goldman Sachs, UBS and Morgan Stanley all indicate they remain optimistic about the Chinese stock market.

Liu Jinjin, chief China equity strategist at Goldman Sachs, maintains an overweight stance on China's stock market, Securities Times reported. Liu believes the appreciation potential of the Chinese yuan against the US dollar and the rise of China's large artificial intelligence (AI) models and their applications are among the main driving factors.

Shi Bin, head of China Equities at UBS Asset Management, says now is a good opportunity to participate in the Chinese market, and he is especially optimistic about technology companies with leading positions in the market.

An investment team of Morgan Stanley believes that compared with other overseas markets, the current valuation of A-shares is still at a relatively low level, and there is still considerable room for expansion in the future, Securities Daily reported. The team continues to be optimistic about three major investment directions: technology growth, "Made in China", and new consumption.