Group 1: Market Overview - In July, foreign capital inflow into Chinese stocks increased to $2.7 billion, up from $1.2 billion in June, with passive funds leading this trend by contributing $3.9 billion, while active funds saw an outflow of $1.2 billion, a significant reduction from June's outflow of $5 billion [1][2] - Southbound capital inflow through the Stock Connect reached $17 billion in July, compared to $10 billion in June, bringing the year-to-date total to $110 billion, surpassing the full-year forecast for 2024 [12][1] Group 2: Fund Flows - Year-to-date, foreign passive funds have accumulated inflows of $11 billion, exceeding the $7 billion level projected for 2024, while active funds have seen a cumulative outflow of $11 billion, which is a slowdown compared to the $24 billion outflow expected for 2024 [3][1] - Global and Asia-Pacific (excluding Japan) funds have slightly reduced their underweight positions in China by 1.4 percentage points and 0.3 percentage points, respectively, while emerging market funds have increased their underweight position by 3.2 percentage points [6] Group 3: Sector and Company Analysis - Active fund managers have increased their holdings in the media and entertainment, pharmaceuticals, and insurance sectors, while reducing their positions in consumer services and durable goods and apparel [7] - Among companies, Tencent, NetEase, Jiangsu Hengrui, and WuXi AppTec have seen the most significant increases in holdings, while Xiaomi has experienced the largest reduction [9]

Group 1: Market Overview - In July, foreign capital inflow into Chinese stocks accelerated to $27 billion, up from $12 billion in June, with passive funds leading the trend by inflowing $39 billion [2][14] - Year-to-date, southbound capital inflow reached $110 billion, surpassing the total for the entire year of 2024 [14] Group 2: Fund Flows - Passive funds saw significant inflows, with a total of $110 billion year-to-date, exceeding the $70 billion level for 2024, while active funds experienced cumulative outflows of $11 billion, a slowdown compared to $24 billion in 2024 [4][12] - Global funds and Asia-Pacific funds (excluding Japan) slightly reduced their underweight positions in China, while emerging market funds increased their underweight positions by 3.2 percentage points [6] Group 3: Sector and Company Analysis - Active fund managers increased their holdings in media and entertainment, pharmaceuticals, and insurance sectors, while reducing their positions in consumer services and durable goods [9] - The most increased holdings among companies included Tencent, NetEase, Jiangsu Hengrui, and WuXi AppTec, while Meituan and Xiaomi saw the largest reductions [11] Group 4: Investment Trends - The inflow of foreign passive funds into China was notably concentrated at the end of July, coinciding with several antitrust announcements [4] - The overall short positions in A-shares and Hong Kong stocks increased primarily in the consumer staples, financial, and communication services sectors [21][22]