Global Markets
Home›Global Markets›China›Overseas capital lifts market value of China hard-tech…
Overseas capital lifts market value of China hard-tech A-shares
Chinese hard-tech firms now make up 7 of the 10 biggest foreign-held A-share positions, with Goldman Sachs pointing to a shift toward onshore “hard-tech” over offshore “soft-tech.”
Overseas investors have increased exposure to China’s advanced manufacturing and technology companies at an unprecedented pace, pushing the market value of their mainland equity holdings to an all-time high by the end of the second quarter, according to SCMP Economy. The inflows have supported northbound holdings under the mainland-Hong Kong Stock Connect.
SCMP Economy said technology and advanced manufacturing companies now account for seven of the 10 largest foreign-held A-share positions, including the top three names. The outlet also linked the rotation to a broader preference for onshore companies.
In a July 13 research note, Goldman Sachs characterized the shift as investors rotating toward onshore “hard-tech” companies rather than offshore “soft-tech” platforms. The focus is reflected in the growing concentration of foreign holdings in mainland technology and advanced manufacturing stocks.