Foreign Investors Expected to Eye More China A Shares – but Pace Set to Ease: Analyst
At UBS's annual China A-share strategy conference in Shenzhen on Tuesday, Meng Lei, China equity strategist at UBS Securities, stated that foreign investors are expected to continue net inflows into China A-shares in the second half of the year, but at a slower pace than in the first half. Overseas holdings of A-shares reached a record high of over 4.4 trillion yuan (US$654 billion) by the second quarter, according to Meng. The tech narrative and A-shares' unique, self-sufficient industrial chain are attractive to global investors, but analysts noted several macroeconomic headwinds, including tech sentiment, US yields, and yuan strength, are tempering foreign capital inflows into onshore bourses.
Key facts
- Meng Lei, China equity strategist at UBS Securities, expects net inflows in the second half but at a slower pace than the first half.
- The statement was made at UBS's annual China A-share strategy conference in Shenzhen on Tuesday.
- Overseas holdings of A-shares reached more than 4.4 trillion yuan (US$654 billion) by the second quarter, the highest level on record.
- The tech narrative and A-shares' unique, self-sufficient industrial chain are attractive to global investors.
- Analysts cited several macroeconomic headwinds, including tech sentiment, US yields, and yuan strength, as tempering foreign capital inflows.
- Foreign appetite for A-shares hit a record in the first half.
Entities
Institutions
- UBS Securities
- UBS
Locations
- Shenzhen
- China