Why foreign investors are re-looking at China?

By continuing to browse our site you agree to our use of cookies, revised Privacy Policy and Terms of Use. You can change your cookie settings through your browser. Exhibitors showcase robots folding clothes at the Digital Economy Industry Expo 2026 in Beijing, China, July 3, 2026. /VCG Editor's note: Cheng He is a chief editor at CGTN Global Business. The article reflects the author's opinions and not necessarily the views of CGTN. Chinese equities posted one of their strongest first-half performances in recent years in H1 2026, with average daily turnover on the Shanghai and Shenzhen stock exchanges nearly doubling from the same period in 2025. Hard-tech, artificial intelligence, robotics and advanced manufacturing stocks spearheaded the rally. Equally striking was the return of overseas investors. Foreign holdings of mainland-listed equities surpassed 4 trillion yuan ($589 billion), up from 3 trillion yuan in mid-2025. For much of the past three years, "underweight China" was the default position for many international investors. Concerns over the property downturn, slowing economic growth, geopolitical tensions and weak consumer confidence prompted global funds to trim their exposure to Chinese assets.

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