Foreign Institutions Increase Holdings In Chinese Stocks

The Shanghai Composite Index closed down 2 points, a 0.07% decrease, with a turnover of 727.3 billion yuan. The current risk release phase is expected to last two more trading days. Market volatility in China is expected to increase during the earnings disclosure period, particularly following April 20. Analysts anticipate a short-term rapid adjustment phase if company results miss expectations. A potential capital outflow effect may impact the market during the final two trading days before the upcoming holiday. The Hang Seng Index closed at 4,078.64 points, down 7.7 points or 0.19%. Foreign investment institutions increased holdings in 443 stocks during the first quarter of 2026. Six of these stocks have a market value exceeding 1 billion yuan and are leaders in their respective niche industries. Zhu Zhuojia, an investment advisor at Shenwai Hongyuan Securities, stated that these holdings are no longer chasing short-term speculative themes. Instead, the investments are focused on two main lines, including sectors such as computing power equipment. Analysts noted that foreign investors are shifting focus toward long-term trends like computing power equipment and industry upgrades rather than short-term speculation. Data shows 135 of the newly increased stocks saw year-on-year net profit growth exceeding 20% in the first quarter.