Foreign China stock inflows hit nearly one-year high

Chinese stocks listed on the Chinese mainland and in Hong Kong attracted a net inflow of $4.6 billion from long-only US and EU funds last month, marking the highest monthly level in nearly a year, according to a Morgan Stanley report, reports Caixin. The largest inflow since November 2024 was driven by passive funds, whose inflows totaled $5.2 billion, according to the report published last week. Meanwhile, active funds saw an outflow of $600 million.

The first nine months of 2025 recorded a net inflow of $6 billion, a reversal from the $17 billion net outflow for all of 2024, Morgan Stanley said.

The trend is largely propelled by passive index-tracking funds and active funds’ targeted bets on specific sectors like semiconductors and capital goods, according to the report.