The COVID-19 pandemic has hit global business hard, and that includes Chinese investment overseas. But the Chinese market is winning the confidence of a growing number of foreign investors.  

According to a new report from international law firm Baker McKenzie, as outbound Chinese investment drops dramatically, investment flowing into China, mainly from the U.S. and Europe, has increased. 

Although economies around the world have plunged into recession due to the coronavirus pandemic, China never halted efforts in further opening up to the world. This year three new free trade zones brought the total number in China to 21.  

Chinese Vice Minister of Commerce Wang Shouwen said in September that the newly-added Pilot Free Trade Zones in Beijing, Hunan, Anhui and the extension to the Zhejiang Pilot Free Trade Zone will enable exploration of greater reform and innovation in a wider scope. The four provinces and cities have favorable conditions for an export-oriented economy. 

Wang added that in the first seven months of this year, more than 3,300 foreign-funded enterprises have been established in 18 Pilot Free Trade Zones, with the actual use of foreign capital standing at more than 90 billion yuan. It fully demonstrates the confidence of foreign-funded enterprises in the Pilot Free Trade Zones.  

Despite the economic recession caused by the pandemic, this year China has overtaken the UK to become the world's fifth-largest fund hub.  

Daisy Ho, president of Fidelity International China, expressed her confidence in the Chinese market. "China has potential as one of the fastest-growing mutual fund markets in the world, with an annual growth rate of more than 10 percent."

"However, the structure of the mutual fund market is changing. When we look at the first six months, we can see the outflow of the money market fund given the very low-interest rate."

Daisy added that investors had to search for income and knew it was becoming even more important, so that's what led them to revise their investment strategies.  

Investors like Daisy have a long-term view and commitment when it comes to investment and expansion in China.