Zhong Guo Ji Jin Bao·2025-07-29 12:03Group 1 - Overseas passive funds are accelerating their return to the Chinese stock market, with some Chinese stock ETFs experiencing significant net inflows recently [1][2] - The largest Chinese stock ETF listed in the US, KWEB, saw a net inflow of $876 million (approximately 6.29 billion RMB) from July 17 to July 25, marking a five-month high for single-day net inflows [2][3] - Other ETFs, such as MCHI and FXI, also reported substantial net inflows, with MCHI achieving a single-day net inflow of $201 million (approximately 1.46 billion RMB) on July 25, the highest for the year [3][4] Group 2 - The CQQQ ETF focused on Chinese technology stocks recorded a net inflow of $7.23 million (approximately 52 million RMB) in the past month, with a notable single-day inflow of $4.84 million (approximately 35 million RMB) on June 27 [5] - Active management funds are also increasing their positions in internet technology stocks, reflecting a preference for high-tech ETFs amid the return of passive funds [7][10] - Notable active funds, such as FSSA China Growth I and Fidelity's China Focus Fund, have increased their holdings in major Chinese tech companies like Tencent and Alibaba [8][10][11] Group 3 - Goldman Sachs has raised its 12-month target for the MSCI China Index from 85 to 90, indicating an estimated 11% upside potential for the index [14] - The interest in Chinese stocks among international investors has reached a high point, driven by factors such as diversification needs beyond the US market and the emergence of AI applications in China [14][15] - Participation of foreign cornerstone investors in Hong Kong IPOs has reached a five-year high, reflecting a strategic rebalancing of investment portfolios [15]