Saad Ullah
⬤ Foreign money is flooding back into China's stock market at a pace not seen in years. Global investors have already pumped more than $50 billion into Chinese equities in 2025—eclipsing the combined total from the previous three years. Fresh data from the Institute of International Finance reveals monthly equity flows are bouncing back hard after a multi-year slump.
⬤ The numbers tell a dramatic story. Inflows crashed from a $70 billion peak in 2021 to barely scraping single digits or low teens through 2022-2024. Now in 2025, year-to-date flows through October are pushing levels last seen during China's strongest post-pandemic bounce. This turnaround shows foreign investors are getting interested again, even with macro headwinds and domestic economic challenges still hanging around.
⬤ Looking back over the past decade, China pulled in steady foreign capital from 2017 through 2021, riding strong growth and better market access. That momentum died in 2022-2023 as geopolitical friction, property sector troubles, and slower GDP growth spooked investors. The 2025 comeback suggests international money managers are rotating back into China as stocks get cheaper and liquidity loosens up—making this year's $50 billion+ inflow one of the biggest on record for the entire period.
⬤ This surge of foreign buying could shift sentiment across Asian markets. When big money flows into China, it tends to stabilize risk appetite regionally and reflects changing global portfolio strategies. As these inflows keep building, they could help smooth out volatility, improve market liquidity, and shape expectations around China's economic path heading into 2026.
Saad Ullah
