FINANCE

Foreign Inflows to Chinese Stocks Hit Nearly One-Year High

Published: Oct. 9, 2025 7:57 p.m. GMT+8

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Chinese stocks listed on the Chinese mainland and in Hong Kong attracted a net inflow of $4.6 billion from long-only U.S. and EU funds last month, marking the highest monthly level in nearly a year, according to a Morgan Stanley report.

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.

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Chinese stocks saw a $4.6 billion net inflow from long-only U.S. and EU funds last month, the highest in nearly a year, driven mainly by passive funds.
In 2025's first nine months, net inflow hit $6 billion, reversing a $17 billion net outflow in 2024.
Major Chinese and Hong Kong indexes have surged, with notable gains: Shanghai Composite up 17%, Hang Seng Index up 33%, and Hang Seng Biotech Index doubling since year-end.

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Who’s Who

Morgan Stanley: Morgan Stanley reported a significant net inflow of $4.6 billion into Chinese stocks from U.S. and EU funds last month, the highest in nearly a year. This was primarily driven by passive funds. Their report also indicated a $6 billion net inflow for the first nine months of 2025, a reversal from the $17 billion net outflow in 2024.

Goldman Sachs: A recent Goldman Sachs report indicated that global hedge funds, which can take both long and short positions, became net sellers of Chinese stocks last month. They reduced long positions, erasing approximately half of the net inflow seen in August. Goldman Sachs noted this suggests profit-taking by fundamental managers after a strong market quarter.

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