From 'Uninvestable' to 'Irresistible': Is Wall Street Falling for China's Stock Market Again?

Is China's stock market suddenly the hottest ticket on Wall Street? After years of being labeled 'uninvestable,' a dramatic U-turn in sentiment is taking hold as 2025 draws to a close, with some of the world's biggest investors now seeing the market as 'irresistible'.

Wall Street's Dramatic Pivot

At a JPMorgan-moderated panel earlier this month, speakers suggested that sentiment on Chinese equities has shifted from 'uninvestable' to 'irresistible,' particularly within the crucial technology sector. This marks a stark contrast to the extreme bearishness that dominated global investor views for nearly three years.

A Painful 58% Plunge

This newfound optimism follows a brutal period. From February 2021 to January 2024, the MSCI China index plummeted by 58% while the mainland CSI 300 index fell 45%. Sentiment was hit hard by a series of JPMorgan reports in March 2022 which famously described China's internet sector as 'uninvestable.' Though the bank later removed the word, the label stuck, fueled by a deep economic downturn, regulatory uncertainty, and ineffective policy stimulus.

The Tech Reassessment

According to Nicholas Spiro of the SCMP, global fund managers may have been overly bearish. They paid insufficient attention to Beijing's prioritization of technological self-reliance. A June report from Morgan Stanley noted that foreign investors had “spent much less time covering China since 2021/2022,” resulting in “limited knowledge of the latest breakthrough on the tech and smart manufacturing fronts.” It seems Wall Street is now playing catch-up.