China's financial markets are seeing increased foreign investment and confidence, supported by a strengthening domestic economic recovery and advancements in the technology sector. In February 2025, foreign investors boosted holdings of Chinese bonds and stocks by a net $12.7 billion, according to the State Administration of Foreign Exchange. The country also recorded a net inflow of $64.8 billion in cross-border capital from the trade of goods, maintaining high levels compared to previous years. The Hang Seng Tech Index has risen 40% over the past three months, with growth attributed to DeepSeek's R1 model and Beijing's supportive policies toward the private tech sector. However, recent trading sessions saw losses in the index, reflecting volatility amid the broader rally. China's consistent policies and attractive valuations are drawing renewed interest from global investors. Observers highlight that doubts over U.S. exceptionalism and a shift in economic momentum are contributing to China's growing appeal in global markets.