Appeal of Chinese assets grows as advanced manufacturing and AI attract global capital

The appeal of Chinese assets is rising among global investors, even as geopolitical uncertainties heighten volatility in global markets. Notably, sectors such as advanced manufacturing and AI are attracting increased capital allocations.

Liu Haoling, vice-chairman of the China Securities Regulatory Commission, said that foreign investors' willingness to allocate capital to high-quality Chinese assets is continuously rising. He noted that at present, the tradable market value of A-shares held by overseas investors has exceeded 4 trillion yuan ($591.2 billion).

The figure was 3.07 trillion yuan during late June of 2025, according to Shanghai Security news.

Meanwhile, recent data from Wind shows global investors, including Morgan Stanley, Barclays and Abu Dhabi Investment Authority (ADIA), have ramped up their exposure to Chinese assets in the first quarter of 2026.

Morgan Stanley's top two holdings by the end of the first quarter were leading Chinese optical module makers, while ADIA expanded its A-share portfolio to 66 stocks from 29 in the previous quarter, focusing on high-end manufacturing and core technologies.

Bonnie Chan, chief executive officer of the Hong Kong Exchanges and Clearing Limited, pointed out two strengths of Chinese assets at a 2026 global investor conference held by the Shenzhen Stock Exchange.

She said one strength is that they have a low correlation with US assets, making them highly valuable for portfolio diversification. Another is China's economy has strong resilience and vast potential, especially in emerging sectors such as artificial intelligence, green energy, energy storage, and biotechnology, where its leading global advancement presents exciting opportunities.

At the same conference, Michael Heldmann, CIO Equity at AllianzGI, voiced long-term bullishness on China's equity market given its high investment value and resilience. Citing China's credit, interest rates, and exchange rates as key metrics, he underscored the market's robust stability, a major draw for overseas institutional capital seeking steady returns.