How Much Foreign Capital Flowed into Chinese Stocks in September 2025?
Foreign capital inflow into Chinese stocks reached $46 billion in September 2025
September 2025 marked a significant milestone for Chinese equities as foreign capital inflow reached an impressive $46 billion. This substantial investment surge represents the highest level observed since China's equity market peak in early 2021. Morgan Stanley analysts note that over 90 percent of investors they met with in the US expressed explicit willingness to increase their exposure to Chinese markets.
The remarkable performance of Chinese capital markets can be attributed to the country's economic resilience and robust regulatory framework that continues to attract international investors. This trend becomes particularly evident when examining recent capital flow patterns:
| Period | Foreign Capital Inflow | Market Sentiment |
|---|---|---|
| August 2025 | Largest net purchases since Sept 2024 | Bullish |
| September 2025 | $46 billion | Highly positive |
| Previous peak | Early 2021 | Bullish |
Chinese stocks listed on mainland exchanges and in Hong Kong have become increasingly attractive for long-only US and EU funds. The government's coordinated efforts, including measures announced by the central bank governor to support the economy and stock market, have successfully positioned Chinese markets as a viable store of wealth comparable to US equities. This renewed confidence signals a potential long-term shift in global investment patterns favoring Chinese financial assets.
Hang Seng Tech Index ETF attracted nearly 40 billion yuan in October
The Hang Seng Tech Index ETF emerged as a dominant investment vehicle in October 2025, attracting a staggering 40 billion yuan in capital inflows. This significant achievement highlights the growing investor confidence in Asian technology markets amid global economic fluctuations. On October 13 alone, ETFs linked to the Hang Seng Technology Index recorded their highest single-day net inflow of 3.339 billion yuan, demonstrating exceptional market momentum.
Market analysts attribute this surge to several factors, including China's recent announcement of 500 billion RMB (approximately $71 billion) support for artificial intelligence initiatives. The performance data reveals compelling trends:
| ETF Performance Metrics | October 2025 | Previous Month |
|---|---|---|
| Total Inflows | ¥40 billion | ¥5.9 billion |
| Single Day High (Oct 13) | ¥3.339 billion | ¥0.85 billion |
| Market Share Growth | 0.59% | 0.31% |
The Hang Seng Tech Index, which provides exposure to innovative companies with strong R&D investments and high revenue growth, has seen its underlying assets recover significantly from September lows. This capital movement indicates a market rotation toward growth-focused sectors in Asian markets, particularly in technology companies specializing in cloud computing, e-commerce, and artificial intelligence applications. Investors appear to be positioning themselves strategically as mainland Chinese stock markets demonstrate resilience despite broader global economic uncertainties.
Ningde Times saw net buying of 21.68 billion yuan through Stock Connect
In 2025, Ningde Times emerged as a significant beneficiary of southbound capital flows, attracting an impressive 21.68 billion yuan in net buying through the Stock Connect program. This achievement reflects the broader trend of substantial mainland Chinese investment into Hong Kong's market, with daily southbound buying regularly exceeding US$2.5 billion during peak periods.
The Stock Connect program has demonstrated remarkable growth, with total net inflows exceeding 1 trillion yuan year-to-date according to the Hang Seng Index Company. Market analysts attribute this surge to growing investor confidence in Chinese equities, particularly in sectors with strong global competitiveness.
Ningde Times' appeal to investors is underscored by its dominant market position in the power battery industry:
| Metric | CATL (Ningde Times) | Industry Comparison |
|---|---|---|
| Global Market Share (Jan-Feb 2025) | 38% | Leading position |
| European Market Share | 43% | Up 8 percentage points YoY |
| Lead Over Second-Place Competitor | 13 percentage points | Significant gap |
| Overseas Power Battery Installations | 97.4 GWh | 10.9% YoY increase |
The increased capital inflow reflects institutional investors' strategic positioning in Hong Kong's market, which now exceeds HK$40 trillion in capitalization. Fund managers indicate global index funds are increasingly required to maintain Hong Kong stock allocations, contributing to the sustained buying pressure benefiting companies like Ningde Times.
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