Foreign capital inflows to China's stock funds amounted to 35 billion U.S. dollars in 2018, according to the latest report by Emerging Portfolio Fund Research (EPFR).
The amount broke a record high in the history and China ranked first in emerging markets.
The report said measures taken by the government to stabilize the economy and curb shadow banking added confidence to foreign investors despite the gloomy performance of China's A shares last year.
Foreign investments still preferred China's food and beverage, biopharmaceutical, and home appliance sectors last year and they increased their holdings of financial shares as well. For instance, foreign investors bought 19-billion-yuan worth of Ping An Insurance shares in 2018, which surpassed Hikvision, a video surveillance company, to top the list.
Bank shares became popular among foreign investors last year. They continued to buy the China Merchants Bank shares especially when its share price slipped to its lowest point in December.
Pacific Securities projected China's finance and energy sectors were likely to become a new focus for foreign investors in the coming year as they are more appealing regarding their profitability.
Foreign investors also paid attention to China's liquor company, the Wuliangye Yibin Co., Ltd. They accelerated their shareholdings of the company by even more than the number one liquor maker, the Kweichou Moutai Co., Ltd.
On the other hand, they decreased their holdings in the home appliance companies except for the Midea Group.
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