UBS analyst expects slower growth in foreign investment for China A shares

AI-summarized · Neutrality-checked

UBS China equity strategist Meng Lei announced at a conference in Shenzhen that foreign investment into China A shares is expected to continue through the second half of the year, though at a slower pace than the first half. By the second quarter, overseas holdings reached a record 4.4 trillion yuan, while holdings under the qualified foreign institutional investor scheme surged 87 percent to 272.8 billion yuan by the end of June. Investors previously sought exposure to companies linked to artificial intelligence supply chains and green energy, drawn by the market’s unique, self-sufficient industrial chain.

Consequences

Global fund managers are expected to continue net inflows into onshore bourses despite the deceleration in buying activity. However, the presence of various macroeconomic headwinds will likely continue to temper the volume of foreign capital entering the market.

Sources

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