Chinese equities see $1.2 billion foreign inflows in June

Published 04/07/2025, 10:24
© Reuters.

Investing.com -- Chinese equities returned to positive territory with $1.2 billion in foreign inflows during June, following outflows in both April and May.

The inflows were driven primarily by passive funds, which contributed $2.7 billion, nearly doubling the $1.4 billion they brought in during May. Meanwhile, active funds continued their exodus from Chinese markets, with outflows of $1.6 billion in June compared to $1.5 billion in May.

As of June 30, cumulative foreign passive inflows since October 2022 reached a historical high, while cumulative foreign active flows hit their lowest level since late 2022.

Underweight positions in China remained stable based on the latest available data. Global funds maintained an underweight position of 1.4 percentage points, Asia ex-Japan funds at 1.3 percentage points, and emerging market funds at 2.7 percentage points.

On the sector level, active fund managers added most to Media & Entertainment and Insurance during the quarter, while reducing positions in Consumer Durables & Apparel and Capital Goods. They increased their underweight in Tech Hardware & Equipment, while reducing underweight positions in Pharmaceuticals Biotechnology & Life Sciences, and Semiconductors & Semiconductors Equipment.

At the company level, Alibaba (NYSE:BABA) and Trip.com saw the most additions to portfolios, while Meituan and Haier Smart Home experienced the most reductions during the quarter.

Southbound flows, representing mainland Chinese investment into Hong Kong-listed stocks, strengthened to $10 billion in June, up from $6 billion in May.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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