Middle Eastern sovereign wealth funds are intensifying their stakes in Chinese mainland equities, according to Q3 2025 earnings data. The Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority (KIA) climbed into the top 10 shareholders among over 50 A-shares companies, marking a milestone in cross-border investment trends.
This week’s Abu Dhabi Finance Week 2025 wrapped up on Thursday in the UAE’s capital, drawing more than 40,000 attendees – including tech luminaries Bill Gates, Ray Dalio, and Stephen Schwarzman – alongside over 5,000 financial institutions such as commercial banks and sovereign funds.
“In selecting equity assets, Middle Eastern investors prefer those that possess a combination of growth potential, strategic synergy, and stable dividend capacity,” explains Zhang Yiming, managing director and global executive head of equities at China International Capital Corp.
- High-end manufacturing tied to green transition and industrial upgrading
- High-quality technology assets with global competitiveness
- Leading traditional industries with stable cash flows and strong governance
Analysts say diversification is only part of the story. Long-term patient capital from the Middle East also signals growing confidence in the Chinese mainland’s economy. “China’s industrial chains and science and technology are continuously advancing – in some areas, they are even relatively world-leading,” notes Zongyuan Zoe Liu, Maurice R. Greenberg senior fellow at the Council on Foreign Relations. “High-precision manufacturing and competitive costs make the mainland a magnet for global investors.”
Looking ahead, Middle Eastern sovereign funds are expected to further increase their allocation to A-shares, potentially becoming a key driver of international capital flows into the Chinese mainland’s stock market.
Reference(s):
cgtn.com
