Global fund managers significantly boosted their stakes in Chinese companies during the second quarter, focusing on AI hardware and green energy.
Key facts
- •Foreign holdings in mainland-listed companies rose from 7.5 billion shares in the first quarter to 10.1 billion by the end of June.
- •The total value of these holdings reached 272.8 billion yuan, or US$40.6 billion.
- •Investment inflows targeted companies within the AI supply chain and the green-energy industry.
- •The data is based on interim reports from nearly 4,000 listed companies compiled by Wind Information.
- •QFII holdings are considered a key indicator for local investors following the suspension of Stock Connect flow disclosures in 2024.
Global fund managers increased their holdings in mainland-listed Chinese companies to 10.1 billion shares by the end of June, rising from 7.5 billion in the first quarter. Data from Wind Information shows the value of these foreign holdings grew by 87 percent to 272.8 billion yuan, or approximately US$40.6 billion.
By the numbers
Investment focus and program details
Foreign investors increased their exposure to yuan-traded stocks by roughly one-third during the second quarter. These investments were primarily directed toward companies involved in the artificial intelligence supply chain and the green-energy sector. The reported figures specifically track participants in the qualified foreign institutional investor (QFII) program, which requires government-approved licenses and quotas.
Significance for local markets
The QFII data is closely monitored by domestic investors in China, who often treat the positions of overseas traders as a signal for market trends. This tracking has gained importance since the Shanghai and Shenzhen stock exchanges stopped disclosing Stock Connect flows in 2024, leaving QFII reporting as the primary method to observe foreign investment activity.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by SCMP Business.
