Positions of Active Long-only Managers in China/HK Foreign inflows into Chinese equities moderated to US$2.2bn in October amid US-China uncertainties and weaker risk appetite toward year-end. It was driven by US$3.2bn inflows from passive funds and US$1.0bn outflow from active funds. Foreign funds added their UW to China in September. Key Takeaways A-shares saw weakening retail participation and equity mutual funds AUM growth. Meanwhile, foreign passive funds to CSI300 recorded notable outflow in October. F ...

October 2, 2025 10:43 PM GMT China Equity Strategy | Asia Pacific Positions of Active Long-only Managers in China/HK Foreign inflows into Chinese equities rebounded to US$4.6bn in September, the highest level since Nov-24, driven by US$5.2bn inflows from passive funds and US$0.6bn outflow from active funds. Global and Axj funds added while EM funds trimmed in China. Key Takeaways A-share continued to see improved retail participation and equity mutual funds AUM growth, while private funds growth and foreign ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Chinese equity market**, particularly the dynamics of **foreign and domestic fund flows** in August 2025, highlighting the engagement of high-net-worth individuals (HNWI) and retail investors in A-shares. Core Insights and Arguments 1. **Foreign Fund Flows**: - Foreign inflows into Chinese equities decreased to **US$0.9 billion** in August from **US$2.7 billion** in July, with passive funds contributing **US$1.4 billion** and active funds experiencing outflows of **US$0.5 billion**, the lowest since mid-2023 [11][1][4] - Year-to-date (YTD) cumulative foreign passive inflows reached **US$13 billion**, surpassing the **US$7 billion** recorded in 2024, while YTD cumulative foreign active outflows totaled **US$11 billion**, down from **US$24 billion** in 2024 [11][1][4] 2. **Market Liquidity**: - A-share liquidity indicates stronger engagement from HNWIs, with retail activity slightly increasing but still below previous peaks [2][4][15] - Onshore private funds saw a significant increase in assets under management (AUM), rising by **Rmb325 billion** to **Rmb5.9 trillion** in July, indicating stronger HNWI activity [23][1] 3. **Sector and Company Trends**: - Active fund managers increased their positions in sectors such as **Capital Goods**, **Media & Entertainment**, and **Transportation**, while reducing exposure in **Consumer Services** and **Energy** [11][1] - Notable companies added to portfolios include **CATL**, **Pop Mart**, and **Zijin Mining**, while **Meituan**, **PetroChina**, and **CCB** were trimmed [11][1] 4. **Retail Participation**: - New account openings on the Shanghai Stock Exchange (SSE) rose to **2.7 million** in August, up from **1.6 million** earlier, but still below the **3.1 million** in March and far from the peaks of **6.8 million** in October 2024 [24][1] - The daily average net inflow of small orders (below **Rmb40,000**) reached **Rmb4 billion** in August, slightly below the **Rmb5 billion** seen earlier in 2025 [24][1] 5. **Shift in Fund Types**: - Onshore mutual funds saw a shift from money market funds to equity and hybrid funds, with equity and hybrid mutual funds adding **Rmb660 billion** in AUM during July-August, while money market funds declined by **Rmb50 billion** [26][1] Other Important Insights - The report indicates a modest return to net buying by foreign passive funds in August after significant outflows in April, although levels remain below those seen earlier in 2025 [35][1] - The analysis of fund positions shows a reduction in underweights for global and emerging market funds in China, suggesting a potential shift in investment sentiment [11][1] This summary encapsulates the key points from the conference call, providing insights into the current state of the Chinese equity market, fund flows, and investor behavior.

Chinese equities are seeing some bullish momentum as of late, with the iShares MSCI China ETF (NASDAQ: MCHI ) returning ~27% Year-to-Date. Investors may wonder whether entering now could be a good idea, as sentiment on Chinese equities isI either put my money into low cost funds or in single stocks that (I think) are asymmetric bets. My portfolio is roughly 50/50 between the two. I like to write about Macro and Fundamentals, with the (painful) awareness that Momentum and Sentiment are what really matters. T ...