Global Times | Foreign investors show continued confidence in China’s capital market
Foreign institutional investors appeared among the top shareholders of numerous listed companies in the half-year reports disclosed so far, reflecting their continued confidence in China's capital market.
In these reports, more than 70 listed companies had Qualified Foreign Institutional Investors (QFIIs) among their top 10 tradable shareholders, with a total shareholding value of about 6.8 billion yuan ($950 million), the Securities Times reported on Wednesday, noting that as China's stock market continues to strengthen, foreign institutional investors have been accelerating their pace of increasing holdings.
The QFII is a program that allows licensed overseas investors to invest in China's domestic capital market.
So far, 663 A-share listed companies have released their half-year reports, with more than 430 reporting year-on-year growth in net profit, the Securities Times reported, citing the latest data from financial information service Wind. Among these, 111 companies saw profits more than double, with the manufacturing and technology sectors showing notable resilience.
Foreign investors' increased holdings in the Chinese market are the result of multiple factors, Hu Qimu, a deputy secretary-general of the Forum 50 for Digital-Real Economies Integration, told the Global Times on Wednesday, noting that initially driven by expectations, investors later observed improvements in the real economy, which gradually fostered market consensus and ultimately led to greater allocations to China.
Amid rising global geopolitical uncertainties, capital tends to seek predictable growth, and China offers relatively stronger certainty, with favorable and supportive policies for businesses, Hu said, talking about why many foreign investors have stepped up their allocations since the beginning of this year.
China's GDP expanded 5.3 percent in the first half, up 0.3 percentage points from the full-year growth rate in 2024, data released by the National Bureau of Statistics showed.
Following the release of China's half-year economic report, multiple foreign institutions raised their growth forecasts for 2025. For example, UBS revised its forecast upward by 0.7 percentage points, while Nomura raised its projection by 0.1 percentage points, the Xinhua News Agency reported.
On July 29, the IMF significantly lifted its forecast for China in 2025 to 4.8 percent, up 0.8 percentage points compared with its forecast in April.
As early as June, Citi had already revised its 2025 GDP growth forecast for China from 4.7 percent to 5 percent, Xinhua reported.
A range of supportive measures has been introduced since last year as China continues to open up to the world. For example, the negative list for foreign investment has been steadily shortened, with all manufacturing restrictions eliminated in 2024.
As policies continue to take effect, more foreign enterprises are expected to actively participate in China's capital market and share in the country's development opportunities, Hu said.