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Zhang Shidong

Foreign investors boosted exposures to yuan-traded Chinese stocks by about a third in the second quarter, buying into companies tied to the artificial intelligence supply chain and China’s strategic green-energy industry.
Global fund managers held a combined 10.1 billion shares in mainland-listed companies by the end of June, up from 7.5 billion in the first quarter, according to financial data provider Wind.
The value of foreign holdings surged 87 per cent to 272.8 billion yuan (US$40.6 billion), taking into account the gains in stock prices, according to the Chinese firm’s data, based on interim reports from nearly 4,000 listed companies.
The data only covered overseas investors taking part in the qualified foreign institutional investor (QFII) programme, which requires regulatory approval of licences and quotas.
The scheme is separate from the cross-border Stock Connect, through which foreign traders can access China’s onshore stocks via the Hong Kong exchange without the need for government approvals.
QFII holdings carry weight in the investment community, particularly China’s individual investors, who often view overseas traders as “smart money” and follow their disclosed positions.
QFII exposure has become the only way for local investors to track foreign recalibration since the Shanghai and Shenzhen bourses suspended disclosure of Stock Connect flows in 2024.
Foreign buying in the second quarter focused on technology companies and those with solid earnings prospects across chipmaking, chemicals and hardware equipment, Wind’s data showed.


Shengyi Technology, a maker of printed circuit boards used in AI infrastructure, Apple supplier Luxshare Precision Industry and Shandong Sinocera Functional Material, which makes multilayer ceramic capacitors for AI servers and data centres, were among those with the biggest foreign inflows during the period, each attracting more than 1 billion yuan.
Shares of Shengyi surged 225 per cent in the second quarter, Luxshare rose 43 per cent and Shandong Sinocera soared 238 per cent.
Gold producer Zijin Mining Group was also among foreign investors’ favourites.
As a proxy for the yellow metal, the company returned to traders’ radar after concerns about US fiscal strain spurred hedging and diversification away from dollar assets. The stock fell 23 per cent in the April-to-June period before recouping all the loss this quarter.
QFIIs ranked among the top 10 biggest shareholders in 1,102 mainland-listed companies in the second quarter, Wind data showed. The biggest were UBS Group, Goldman Sachs and BNP Paribas, with each of their holdings surpassing 20 billion yuan.
Shengyi, Bank of Ningbo, Bank of Nanjing and Contemporary Amperex Technology Limited remained their biggest holdings.
China had approved 999 overseas investors under the QFII scheme by late August.
HSBC said in a report this week it saw opportunities in AI hardware, go-global strategy firms and new consumer companies on China’s onshore markets. The UK bank also said Chinese innovative technology companies could post an average of 90 per cent profit growth this year.


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Foreign exposures to yuan-traded stocks jump by a third, with QFII data showing holdings surging to more than US$40 billion


Foreign exposures to yuan-traded stocks jump by a third, with QFII data showing holdings surging to more than US$40 billion.


Foreign investors boost Chinese stock holdings as AI hardware, green energy lure inflows

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Foreign exposures to yuan-traded stocks jump by a third, with QFII data showing holdings surging to more than US$40 billion

Foreign exposures to yuan-traded stocks jump by a third, with QFII data showing holdings surging to more than US$40 billion