Foreign investors move funds to A-share 'safe harbor'

China has become the safe harbor amid global economic uncertainties and foreign investors are actively participating in the A-share market, according to the vice-chairwoman of JPMorgan Asia.

"While overseas markets are turbulent, the Chinese economy is very steady and the economic transition has achieved good results, which makes China a safe harbor," said Jing Ulrich, vice-chairwoman of Asia Pacific at JPMorgan Chase & Co.

According to the National Bureau of Statistics in October, China's growth rate in the first three quarters of the year was 6.7 percent, which is at a medium-high level and among the highest in the world.

Growth rate in the United States this year is expected to be around 2 percent and there's almost no growth in Japan and Europe, she said.

According to Ulrich, there will be lots of investment opportunities in China in 2017. Popular sectors in the next five years include services, technology, education, healthcare and entertainment.

The Shenzhen-Hong Kong Stock Connect, which allows mainland investors to buy and sell Hong Kong stocks and vice versa, is expected to be launched this year.

Charles Li, chief executive of Hong Kong Exchanges and Clearing, said on Tuesday that the Connect will begin operating in the coming one or two weeks.

"Global investors are showing great interest in the upcoming stock connect and they are also actively purchasing shares in advance through the QFII (Qualified Foreign Institutional Investors) quota," said Ulrich.

Ulrich also said China may use more fiscal policies to stimulate the economy, which will be good for the metals markets.