Foreign Capital Makes a Comeback in Aug 2025 📈
August 2025 saw Chinese stocks record the largest net purchases in both domestic and overseas markets since September 2024, marking the biggest inflow since last fall. A Goldman Sachs report reveals that global hedge funds’ gross exposure to China hit a two-year high during the month.
Reuters also notes China’s $19 trillion stock market—once labeled "uninvestable"—is now back on the radar for global portfolios. 🌏 Why? A booming tech sector and the need to rebalance from US-heavy holdings are driving this wave of investment. These flows aren’t just short-term trades—they’re strategic moves in a bigger global asset shuffle.
Confidence & Policy Clarity Fuel the Rally 💪
This revival is more than just market liquidity. It signals growing faith in China’s economic resilience and a more predictable policy landscape. Over the past year, Beijing has rolled out pro-growth, confidence-boosting packages—think clearer market rules, consistent enforcement, and coordinated fiscal, monetary, and industrial efforts to stabilize expectations.
As a result, corporate valuations are realigning with real earnings potential. Companies with healthy cash flow, stronger dividends, and transparent governance are now the go-to picks for long-term investors, from Mumbai to Manila. 🇮🇳🇵🇭
What Young Investors Should Know 🔍
For young pros in South and Southeast Asia, this trend offers fresh angles: explore tech stocks with solid fundamentals and consider how adding Chinese mainland exposure could diversify your portfolio. Remember: look for businesses with clear growth paths and good governance—without getting swept up in hype.
Whether you’re following from Kuala Lumpur or Kathmandu, keep an eye on policy updates and earnings reports. This isn’t just about chasing returns—it’s about building resilient portfolios for the long run. 🌟
Reference(s):
cgtn.com
