Global markets are abuzz as foreign investors ramp up their exposure to the Chinese mainland's stock market. On Tuesday, the Shanghai Composite Index soared to 3,746.67 points during intraday trading—the highest level in nearly a decade—signaling renewed confidence across international portfolios.
Data from H1 2025 filings shows that qualified foreign institutional investors (QFIIs) now rank among the top-ten shareholders in over 70 listed companies in the Chinese mainland's A-share market. Their combined holdings total roughly 6.8 billion yuan (about $950 million), a clear endorsement of growth prospects on the mainland.
Investors are diversifying across sectors. Automotive names are drawing attention as electric vehicle demand surges, while pharmaceuticals and biotechnology firms appeal to those betting on innovation in life sciences. Food and beverages brands offer stable cash flows, and hardware equipment producers benefit from the tech upgrade cycle.
Analysts say this trend reflects a broader shift: global portfolios are recalibrating to include more emerging-market equities. A QFII portfolio manager said the market is offering valuations and growth stories that resonate with their mandate for high-conviction bets. With macro indicators stabilizing and policy signals improving, many see room for further upside.
For young global citizens and business-savvy readers, this surge underscores how interconnected capital flows can reshape market narratives and fuel innovation across borders.
Reference(s):
cgtn.com
