The global political environment and capital markets are currently grappling with tremendous uncertainties. In times of risk, the world looks to China for clear perspectives and strategic direction. After all, China remains one of the most crucial engines of global economic growth.

Overall, the messages emerging from the recently concluded two sessions — annual meetings of China's top legislature and top political advisory body — provided exactly that: clear guidance and strong confidence. China has demonstrated its unwavering commitment to pursuing both growth and stability. Beyond its borders, these meetings have injected a much-needed dose of certainty into an increasingly volatile global landscape.

China's economic strategy is both reasonable and pragmatic. The annual economic growth target, set within a range of 4.5 percent to 5 percent, aligns perfectly with the country's long-term developmental goals. To double per capita GDP by 2035, an annual growth rate of at least 4.2 percent is required. This ambition stands out when viewed globally. Developed markets are growing at around 1 percent, while emerging markets hover at roughly 5 percent. Achieving such robust growth for an economy of China's immense scale is not easy, and it will require rigorous policy execution.

To achieve this target, China is focusing on consumption upgrades. This is a challenging yet necessary step in its transition from an emerging to a developed market. Fortunately, the endeavor is strongly supported by a comprehensive government toolkit that includes robust fiscal and monetary policies.

Simultaneously, there is a profound emphasis on innovation. The government has proposed the development of a new "smart economy". By focusing heavily on artificial intelligence, China intends to seize emerging technological opportunities to drive high-quality development.

Amid global turbulence, China continues to open its doors wider to foreign talent, capital and technology. In terms of market access, the Government Work Report pledges to broaden entry into several service sectors. These include telecommunications, biotechnology, healthcare and the digital economy. This openness naturally paves the way for more collaborative deals and international partnerships.

On the trade front, China is encouraging imports and service-based exports to foster balanced global commerce. Domestically, enterprises are encouraged to expand their global footprint with a long-term perspective. Furthermore, China continues to advocate for infrastructure investments to build a resilient global supply chain. The Belt and Road Initiative is a prime example of this effort. It serves as a collaborative network designed to utilize global resources for the benefit of the entire world.

Regarding investment, the country is taking concrete steps to attract foreign direct investment. Through initiatives like the "Invest in China" campaign, the government aims to reduce costs, improve services and enhance protections for international investors. Fostering a market-based, law-based and internationalized business environment remains a top priority, as consistently emphasized by securities regulators.

The necessity of such a stable environment is underscored by the recent crisis in the Middle East. Geopolitical struggles have sent shockwaves through global markets, triggering negative impacts on equities. Major global indices have dropped by 1 to 2 percent. Volatility has spiked, with the CBOE Volatility Index briefly approaching 30 before settling around 24. Commodity prices and the US dollar have experienced wild fluctuations. Consequently, many corporations and investors are retreating from the region to reconsider their long-term strategies.

China is deeply integrated into the global economy and inevitably feels the ripple effects of such crises. However, its exposure to these specific geopolitical shocks remains relatively low. Volatility saw only a minimal increase and mostly remained stable between 14 and 16 percent. The implication for global capital markets is straightforward. If you are looking for growth, stability and diversification, China is undeniably an optimal choice.

Market observations indicate a significant warming of foreign sentiment toward Chinese assets. From an equity perspective, the resilience and low volatility of the domestic stock market stand out. This performance is especially impressive when contrasted with other regional markets. For instance, South Korea's KOSPI recently plunged nearly 20 percent, while Thailand's bourse triggered circuit breakers.

From a capital flow perspective, the Hong Kong Connect programs serve as a direct proxy for foreign investor sentiment. During the two sessions, the total northbound daily turnover consistently exceeded 280 billion yuan ($40.58 billion). It even peaked at 361.2 billion yuan on March 9. This persistent participation reflects a strong, tangible vote of confidence in China's capital market.

Finally, on the currency front, the renminbi has appreciated steadily over the past month. This highlights the rising intrinsic value of Chinese assets. It is steadily drawing in international capital seeking security amid global headwinds. The central bank has also accelerated the internationalization of the RMB by expanding clearing services and market links to boost the currency's global popularity.

Ultimately, the 2026 two sessions have reinforced China's attractiveness to global capital. Foreign institutions are actively looking to rebalance their portfolios to mitigate risks. In this critical moment, China stands fully prepared to welcome high-quality foreign engagement.