Aiming at the long-term value of Chinese assets, overseas long-term capital continues to flow back

Multiple foreign institutions have stated that the Chinese economy demonstrates resilience, market valuations are attractive, and the policy environment continues to improve, driving overseas long-term capital to accelerate its return to the Chinese stock market. In terms of allocation direction, foreign capital is focusing on technology growth, resource products, industries with improving fundamentals, and high-dividend sectors.

Overseas funds have shown a positive inflow into Chinese assets this year. Data disclosed by Morgan Stanley shows that as of November this year, foreign long-term capital has net purchased approximately USD 10 billion of A-shares and H-shares through channels such as the Shanghai-Shenzhen-Hong Kong Stock Connect, in stark contrast to the estimated USD 17 billion outflow in 2024.

Goldman Sachs' latest global fund flow report indicates that in the month ending December 3rd, Chinese stock funds received a net inflow of USD 5.846 billion, surpassing markets such as South Korea and India.

Overseas China ETFs have also continued to attract capital this year. According to Futu data: as of December 9th, the asset size of the China Overseas Internet ETF-KraneShares was USD 8.914 billion, an increase of USD 3.5 billion from USD 5.414 billion at the end of last year; the asset size of the MSCI China ETF-iShares was USD 7.878 billion, an increase of USD 2.427 billion from USD 5.451 billion at the end of last year. (Shanghai Securities Journal)