Foreign asset managers step up investment in Chinese equity market

<article><section data-type="rtext"><img data-alt="Photo: VCG" src="//img.huanqiucdn.cn/dp/api/files/imageDir/bdbdc78812cc7f957575106f84708cf7.jpeg?imageView2/2/w/750" />A German pension fund, KZVK, has allocated $50 million to Fullgoal Asset Management (HK) to invest in Chinese equities listed in the Hong Kong Special Administrative Region, the Chinese mainland, and the US, Bloomberg reported on Monday, citing insiders. KZVK's reported move comes as other global asset managers have also been stepping up their investment in the Chinese equity market. The moves are underpinned by the vast potential and resilience demonstrated by the Chinese A-share market amid a strategic global capital rebalancing, Chinese analysts said on Monday. Previously, the private equity arms of Singapore-based True Light Capital and global asset manager Earnest PartnersPrivateCapital both completed their filings with the Asset Management Association of China in June, according to the Shanghai Securities News. Analysts with Nomura Orient International Securities predicted in June that Chinese equities could outperform global peers in the second half of 2025, citing factors including expectations of more supportive policy, improving domestic liquidity, and rising global interest in Asia-Pacific markets amid a weaker US dollar, according to the Securities Times. "Compared with the same period last year, the money-making effect of the A-share market has rebounded significantly. In the first half of the year, tech shares performed well, with listed firms in sectors ranging from humanoid robots and chips to innovative drugs and new consumption all showing active trends," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Monday. Amid the shifting global situation, the effects of China's stabilizing growth policy are set to further intensify, Yang said, noting that both the A-share market and the Hong Kong stock market are expected to show a robust performance. China's resilient economy and sound growth potential are injecting more optimism and growing interest in Chinese assets among foreign investors, noted Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China. "The Chinese equity market is consolidating its foundations for upward movements, as is the Chinese economy. Foreign investors are closely following this trend," Dong told the Global Times on Monday, adding that the latest investment allocation by the German fund could be followed by more investments in Chinese equities. According to a report by the Securities Times on Monday, several industry insiders have noted that since the beginning of 2025, a strategic global capital rebalancing has been quietly unfolding as global capital allocation has been marked by outflows from US dollar-denominated assets to non-US-dollar assets. Valuations in emerging markets are relatively low, and along with breakthroughs in the field of artificial intelligence, the Chinese stock market has received support as the country's transformation from being "the world's factory" to a global technology innovator is set to further unleash the growth potential of Chinese technology stocks, the report said, citing experts. The steady projection for the Chinese equity market is coupled with a need by global fund managers to diversify their portfolios amid a weakening US dollar. "The decline of 'American exceptionalism' and the growing demand for diversified investment by investors have further promoted the integration of China into the global financial system, thus increasing the exposure of global investors to Chinese assets or yuan-denominated assets," Liao Wanjing, a manager with Fidelity International, told the Global Times. China's A-share market has maintained growth in the first half of the year, with the benchmark Shanghai Composite Index showing a cumulative increase of 2.76 percent to 3,444.43 points, according to a report by China National Radio on July 2. The Shenzhen Component Index finished the period 0.48 percent higher while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, rose 0.53 percent.</section></article>

A German pension fund, KZVK, has allocated $50 million to Fullgoal Asset Management (HK) to invest in Chinese equities listed in the Hong Kong Special Administrative Region, the Chinese mainland, and the US, Bloomberg reported on Monday, citing insiders.

KZVK's reported move comes as other global asset managers have also been stepping up their investment in the Chinese equity market. The moves are underpinned by the vast potential and resilience demonstrated by the Chinese A-share market amid a strategic global capital rebalancing, Chinese analysts said on Monday.

Previously, the private equity arms of Singapore-based True Light Capital and global asset manager Earnest PartnersPrivateCapital both completed their filings with the Asset Management Association of China in June, according to the Shanghai Securities News.

Analysts with Nomura Orient International Securities predicted in June that Chinese equities could outperform global peers in the second half of 2025, citing factors including expectations of more supportive policy, improving domestic liquidity, and rising global interest in Asia-Pacific markets amid a weaker US dollar, according to the Securities Times.

"Compared with the same period last year, the money-making effect of the A-share market has rebounded significantly. In the first half of the year, tech shares performed well, with listed firms in sectors ranging from humanoid robots and chips to innovative drugs and new consumption all showing active trends," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Monday.

Amid the shifting global situation, the effects of China's stabilizing growth policy are set to further intensify, Yang said, noting that both the A-share market and the Hong Kong stock market are expected to show a robust performance.

China's resilient economy and sound growth potential are injecting more optimism and growing interest in Chinese assets among foreign investors, noted Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China.

"The Chinese equity market is consolidating its foundations for upward movements, as is the Chinese economy. Foreign investors are closely following this trend," Dong told the Global Times on Monday, adding that the latest investment allocation by the German fund could be followed by more investments in Chinese equities.

According to a report by the Securities Times on Monday, several industry insiders have noted that since the beginning of 2025, a strategic global capital rebalancing has been quietly unfolding as global capital allocation has been marked by outflows from US dollar-denominated assets to non-US-dollar assets.

Valuations in emerging markets are relatively low, and along with breakthroughs in the field of artificial intelligence, the Chinese stock market has received support as the country's transformation from being "the world's factory" to a global technology innovator is set to further unleash the growth potential of Chinese technology stocks, the report said, citing experts.

The steady projection for the Chinese equity market is coupled with a need by global fund managers to diversify their portfolios amid a weakening US dollar.

"The decline of 'American exceptionalism' and the growing demand for diversified investment by investors have further promoted the integration of China into the global financial system, thus increasing the exposure of global investors to Chinese assets or yuan-denominated assets," Liao Wanjing, a manager with Fidelity International, told the Global Times.

China's A-share market has maintained growth in the first half of the year, with the benchmark Shanghai Composite Index showing a cumulative increase of 2.76 percent to 3,444.43 points, according to a report by China National Radio on July 2. The Shenzhen Component Index finished the period 0.48 percent higher while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, rose 0.53 percent.

The steady projection for the Chinese equity market is coupled with a need by global fund managers to diversify their portfolios amid a weakening US dollar.