Chinese Hard-Tech Giants Hit 3.13 Trillion Yuan in Foreign Holdings as Capital Rotates Onshore
Updated
Updated · South China Morning Post · Jul 13
Chinese Hard-Tech Giants Hit 3.13 Trillion Yuan in Foreign Holdings as Capital Rotates Onshore
1 articles · Updated · South China Morning Post · Jul 13
Summary
Northbound holdings in Chinese hard-tech giants climbed to a record 3.13 trillion yuan by the end of June, capping a first-half surge in overseas buying through the mainland-Hong Kong Connect programme.
Technology and advanced manufacturing now make up seven of the 10 largest foreign-held A-share positions, including the top three, showing how concentrated the inflows have become.
Goldman Sachs said the shift reflects investors' growing preference for onshore “hard-tech” names over offshore “soft-tech” platforms, and reiterated a tactical preference for A-share technology stocks in a July 13 note.
The rotation underscores a broader re-rating of mainland tech and manufacturing champions as global capital seeks China exposure through domestic equities rather than offshore internet platforms.
With Beijing now curbing its 'spray and pray' tech funding, what new risks threaten the global capital pouring into China?
Can China's state-directed innovation model truly win the global tech race, or is it creating a massive bubble?
As China builds its 'economic fortress,' is the world walking into a trap of technological dependency on Beijing's standards?
Unprecedented Foreign Investment Floods China’s Hard-Tech Sector: Hong Kong IPO Proceeds Up 92% in H1 2026
Overview
In the first half of 2026, foreign capital surged into China’s hard-tech sector, driving a substantial increase in the value of leading companies. This influx was fueled by international investors’ robust confidence in the sector’s future and a deliberate shift in overseas portfolios toward industries that align with Beijing’s push for technological advancement and self-reliance. As investment preferences moved away from traditional consumer and financial stocks, onshore hard-tech companies became the new focus. Goldman Sachs’ reaffirmation of A-share technology stocks further highlighted strong investor appetite, marking a significant realignment in global investment strategies.