Foreign interest in China’s domestic A-share market remains positive, though the aggressive buying trend observed earlier this year is expected to cool. According to Meng Lei, a China equity strategist at UBS Securities, the market should continue to see net inflows for the rest of the year, albeit at a more measured rate than the surge recorded in the first half of 2024.

This outlook was shared during the annual UBS China A-share strategy conference held in Shenzhen. While the report indicates a sustained appetite for mainland equities, the shift toward a slower pace of investment suggests a transition from the initial post-reopening or policy-driven momentum to a more cautious phase of capital allocation. The analysis focuses on the behavior of foreign institutional investors, who have been key drivers of liquidity in the A-share market. The report does not detail specific sectors that may see increased activity, nor does it provide a breakdown of the geopolitical factors that might influence these investment flows in the coming months.