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Foreign Investment in Chinese Stocks Slows for Third Month

9/6/2025

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Summary

Story summary

Foreign investment in Chinese stocks slowed in August, marking the third consecutive month of inflows.
Inflows from US and European funds fell to US$900 million, down from US$2.7 billion in July.
Passive funds gained US$1.4 billion, while active funds lost US$500 million, the lowest since mid-2023.
Year-to-date inflows for foreign long-only funds reached US$1 billion, contrasting with last year's US$17 billion outflow.
Morgan Stanley reported increased interest from high-net-worth investors and a slight rise in retail activity.
Global funds reduced their underweight positions in China, with Asian funds moving to overweight.

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Story summary

Foreign investment in Chinese stocks slowed in August, marking the third consecutive month of inflows.
Inflows from US and European funds fell to US$900 million, down from US$2.7 billion in July.
Passive funds gained US$1.4 billion, while active funds lost US$500 million, the lowest since mid-2023.
Year-to-date inflows for foreign long-only funds reached US$1 billion, contrasting with last year's US$17 billion outflow.
Morgan Stanley reported increased interest from high-net-worth investors and a slight rise in retail activity.
Global funds reduced their underweight positions in China, with Asian funds moving to overweight.