Core Insights - International investors increased their holdings in Chinese stocks during the third quarter of 2023, with the allocation reaching 1.1%, the highest level since the first quarter of 2023 [1] Group 1: Investment Trends - Global, emerging market, and Asian investors slightly raised their positions in Chinese stocks in Q3 2023 [1] - The top 40 global investment institutions reported an increase in their Chinese stock holdings [1] - The healthcare, insurance, energy, materials, and internet sectors saw the most significant increases in investment from international investors [1] Group 2: Fund Performance - Approximately 800 actively managed foreign funds tracking Chinese stocks held a total of $270 billion in Chinese equities [1] - By Q3 2025, these funds reduced their underweight position in Chinese stocks by 30 basis points, reaching the lowest underweight level since Q4 2022 [1] - The number of funds not holding any Chinese stocks decreased from 167 in Q2 2025 to 145 in Q3 2025, with a total asset management scale of $212 billion [1] Group 3: Capital Inflows - Emerging markets outside of China also experienced some capital inflows during Q3 2023 [1] - The southbound capital flow through the Shanghai-Hong Kong Stock Connect reached $56 billion in Q3 2023, maintaining the record levels seen in Q1 2023, with all sectors recording net inflows [1]