Zheng Quan Shi Bao·2026-01-12 22:28Core Insights - Northbound capital has shown significant growth in trading activity and investment preferences, particularly favoring hard technology and non-ferrous metals sectors in 2025 [1][2][3][7]. Group 1: Market Performance - By the end of 2025, northbound capital held nearly 1.08 trillion shares of A-shares, with a market value surpassing 2.59 trillion yuan, marking a nearly 20% increase from the previous year [2]. - The total trading volume of northbound capital exceeded 50.33 trillion yuan in 2025, representing a more than 40% increase year-on-year, contributing nearly 6% to the overall A-share market trading volume [3]. - The trading activity of northbound capital reached new heights, with 33 trading days exceeding 300 billion yuan, 27 of which occurred in 2025 [3]. Group 2: ETF Trading - Northbound capital's ETF trading volume surpassed 810 billion yuan in 2025, a 76% increase from 2024, indicating a growing preference for ETF investments among foreign investors [4]. - The proportion of ETF trading in the total northbound capital trading volume reached 1.62%, setting a historical high [4]. Group 3: Sector Preferences - The hard technology and non-ferrous metals sectors emerged as the new favorites for northbound capital, with 14 industries seeing holdings exceed 50 billion yuan, and 10 industries surpassing 100 billion yuan [7]. - The electric equipment sector led with a holding value of over 449.6 billion yuan, followed by the electronics sector at over 387 billion yuan, and the non-ferrous metals sector at over 185.5 billion yuan [7]. - The non-ferrous metals sector saw a remarkable growth of over 172% in holdings compared to the end of 2024, reflecting a shift in investment focus [8]. Group 4: Stock Concentration - The concentration of holdings by northbound capital reached a five-year low in 2025, indicating a trend towards diversification in investment strategies [10]. - The top 20 companies held by northbound capital accounted for less than 36% of total holdings, a decrease of over 2 percentage points from 2021 [11]. Group 5: Popular Investment Themes - In 2025, eight out of ten popular investment themes, including commercial aerospace and semiconductor sectors, saw over 50% of their constituent stocks receiving increased holdings from northbound capital [9]. - The commercial aerospace sector, in particular, had over 80% of its stocks increased in holdings, driven by strong market performance and supportive policies [9]. Group 6: Long-term Trends - Eighteen stocks have been consistently increased in holdings for five consecutive quarters, primarily in the machinery, electric equipment, and automotive sectors, indicating strong institutional confidence [12]. - Conversely, 26 stocks have seen reductions in holdings over the same period, mainly in the pharmaceutical, banking, and consumer sectors, reflecting a shift in investment focus [12][13].