Despite news about China's slowing economy, strong local currency, high labor cost, and uncontrolled smog, institutional investors continue to manifest high confidence toward China, a recent global survey showed.

Institutional investors are organizations that allocate huge amount of money and invest these money in real property, securities and other assets. Institutional investors include hedge funds, mutual funds, pension funds, and banks.

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Based on a recent survey conducted by global investment management company Baring Asset Management, also known as Barings, nearly 50 percent of institutional investors who responded to the survey said they remain confident on China, with majority of the investors saying they will increase their investment in the country.

The investors said China's corporate governance has improved since 2011 and the planned financial reforms hold promising returns to investors.

However, the survey respondents said China's target of 7.5 percent gross domestic product (GDP) growth may not actually be achieved as they believed the actual growth for this year could be somewhere near 5.4 percent.

Barings said institutional investors have considered China as one of their top investment destinations as the country has become more accessible to foreign investors, making it more attractive.

"In our view, China remains very attractive especially now that it has become more accessible to foreign investors," said David Stevenson, head of Product and Business Development at Barings.

The same survey also showed that nearly half of investors polled believed Asian emerging markets, including China, will outperform European equities by 2017 and will eventually outperform global emerging markets.

The growth in Asia will be driven by the expanding middle classes, lower levels of government and private debt, and a relatively younger population.

The Barings findings did not include the number of respondents who answered the survey and the demographic of the institutional investors who were surveyed.