Foreign holdings in China A shares surge 87% to $40.6 billion by end of June
Global fund managers significantly increased their stake in Chinese stocks driven by AI and green energy sectors, though future growth is expected to slow.
By the end of June, foreign investors held 272.8 billion yuan ($40.6 billion) in mainland-listed companies according to financial data provider Wind. This represents a surge of 87% from the first quarter, reaching a record high for overseas capital in China. The increase primarily involved artificial intelligence supply chain firms and green energy companies. Meng Lei, a China equity strategist at UBS Securities, noted that while net inflows remain positive in the second half of the year, the buying pace will be slower compared to earlier months. Holdings under the qualified foreign institutional investor (QFII) programme accounted for this 87% rise to $40.6 billion as recorded on Wind data. Local investors often view these overseas traders as smart money following disclosed positions because Shanghai and Shenzhen stock exchanges stopped reporting flows from the Stock Connect scheme in 2024. While aggregate foreign holdings reached over $654 billion by the second quarter, analysts warn that several macroeconomic headwinds are currently cooling enthusiasm for onshore bourse investments.
