Rise in Foreign Investors’ Holdings of Chinese Stocks Was Likely Modest, Fragile

While top institutions grew their holdings in select sectors in the third quarter, policy and geopolitical uncertainties may spark a renewed exodus

The value of Chinese stocks held by foreign-owned asset management institutions amounted to $776.1 billion at the end of the third quarter. Photo: AI generated

While foreign holdings of Chinese stocks likely expanded in the third quarter, when Beijing made efforts to stimulate the economy, the expansion may have been modest and the prospect for further increases is unclear amid policy and geopolitical uncertainties, according to analysts.