Latest QFII Holdings Data Released, How Did Middle East Funds Move? European and American Trends Also Revealed

Why Are Foreign Investors Intensively Investing in Sub-Sectors of Semiconductor Manufacturing?

Cailian Press, March 22 — (Reporter Wu Yuqi) As listed companies gradually disclose their 2025 annual reports, the latest holdings of foreign institutions like QFII in A-shares are becoming clearer.

As of March 22, a total of 41 listed companies appear in the QFII heavy holdings list, with 77 positions involving 16 foreign institutions. From the disclosures, many of these foreign investors first entered the top ten tradable shareholders of these companies during the annual report disclosure window, with some sovereign wealth funds, international investment banks, and large asset managers adjusting their positions structurally—adding, reducing, or initiating new holdings simultaneously.

In terms of institutional distribution, Swiss Union Bank, Barclays, Morgan Stanley, Goldman Sachs, and JPMorgan Chase remain highly active. Sovereign funds like Abu Dhabi Investment Authority, Kuwait Investment Authority, and Macau Monetary Authority continue to appear among shareholders of pharmaceutical, energy, and equipment manufacturing companies. Major banks such as Goldman Sachs, Morgan Stanley, JPMorgan Chase, BNP Paribas, and Merrill Lynch International frequently invest in semiconductors, hardware equipment, electrical equipment, and auto parts.

Industry-wise, the current QFII holdings mainly focus on pharmaceuticals and biotech, semiconductors, hardware equipment, machinery, electrical equipment, and chemicals, with manufacturing still being the primary target for foreign disclosed holdings. Many industry insiders believe that, based on current disclosures, foreign capital is not simply returning to traditional large-cap blue-chip stocks but is instead targeting specific segments within manufacturing, pharmaceuticals, and technology chains.

Divergence in Foreign Capital Increases and Reductions

Looking at the direction of increased holdings, Abu Dhabi Investment Authority continued to add to Baofeng Energy Holdings, increasing its stake by 400,000 shares to a total of 44.81 million shares by the end of last year, with a market value of 880 million yuan. Goldman Sachs International increased its holdings of Shahe Shares by 1.137 million shares, added 459,000 shares of *ST Songfa, and the Goldman Sachs Group increased its stake in Shengtun Mining by 1.326 million shares. JPMorgan Chase also increased its holdings of Zhejiang Liming by 1.191 million shares. Kunming Pharmaceutical Group also saw increased holdings, with Kuwait Investment Authority holding 5.9068 million shares, up 857,800 shares from the previous period.

Reductions are also evident. Abu Dhabi Investment Authority slightly reduced its holdings of China Railway Construction Heavy Industry. Goldman Sachs International reduced its stake in Xiechuang Data by 1.6275 million shares, and Macau Monetary Authority decreased its holdings of Kunming Pharmaceutical by 3.268 million shares. In stocks like Hengdian Film & TV, Xidaomen, *ST Songfa, and Sanchao New Materials, institutions such as Swiss Union Bank and Morgan Stanley also reduced their positions to varying degrees. Overall, foreign investors are maintaining key positions while rebalancing some holdings.

Most activity involves new entries. Notably, Swiss Union Bank entered 12 companies, including Demingli, Xinnuowei, Ultrasound Electronics, Baosheng Shares, Huitong Energy, Zhongxing Bacteria, and Dawei Shares. Morgan Stanley entered 8 companies, including Jinhaitong, Baosheng Shares, Yanjiang Shares, Stitek, Zhejiang Liming, Dawei Shares, Shuhua Sports, and Jiusheng Electric. JPMorgan Chase entered Zhongxing Bacteria, Dawei Shares, Stitek, Quoxin Shares, Shahe Shares, and Chaoyang Technology. Goldman Sachs Group also newly became a top ten shareholder in Feilong Shares, Bomaike, and Tianhong Shares, among others. (Below is the list of QFII heavy holdings as of March 22.)

Further disaggregating by institution type reveals distinct focus areas. Among sovereign wealth funds, Abu Dhabi Investment Authority remains a key player, continuing to hold Baofeng Energy and also among the top ten shareholders of China Railway Construction Heavy Industry. Kuwait Investment Authority and Macau Monetary Authority hold Kunming Pharmaceutical. UBS Global Asset Management (Singapore) owns Dong’e E Jiao, and Temasek’s Fudan Investment holds China Resources Sanjiu. These funds are currently more concentrated in pharmaceuticals, energy, and equipment manufacturing.

International investment banks and foreign brokerages are more active in specific manufacturing and tech chains. Goldman Sachs covers a broad range, appearing among the top ten shareholders of Shahe Shares, Xiechuang Data, *ST Songfa, Zhejiang Liming, and Sanchao New Materials. The Goldman Sachs Group has positions in Shengtun Mining, Feilong Shares, Bomaike, Shuhua Sports, and Quoxin Shares.

Morgan Stanley appears in 10 companies, JPMorgan Chase in 7, and Barclays in 12, involving semiconductors, electronics, electrical equipment, auto parts, and consumer manufacturing. Swiss Union Bank is active in 15 companies, making it one of the most active foreign institutions disclosed.

Another notable phenomenon is overlapping holdings among multiple foreign institutions in the same stocks. For example, Dawei Shares is held by five foreign institutions simultaneously, making it the most overlapping stock. *ST Songfa, Zhejiang Liming, Shahe Shares, and Shuhua Sports are each held by four institutions; Stitek, Quoxin Shares, Hengdian Film & TV, and Sanchao New Materials are each held by three.

Stocks like Jinhaitong, Kunming Pharmaceutical, Bomaike, Yanjiang Shares, Baosheng Shares, and Zhongxing Bacteria also see multiple foreign institutions among the top ten shareholders. Disclosed data shows these stocks are mainly in semiconductors, equipment manufacturing, auto parts, and pharmaceuticals, highlighting the focused clustering of foreign capital in specific sub-sectors.

Pharmaceuticals and Tech Manufacturing as Main Focus for QFII

Industry-wise, the current disclosed holdings are quite concentrated.

Manufacturing remains the primary allocation. Among the 41 listed companies, most are in manufacturing sectors such as semiconductors, hardware, electrical equipment, machinery, auto parts, and chemicals. Compared to past market stereotypes favoring consumer staples and financial giants, this disclosure reveals a denser focus on specific manufacturing chains.

Semiconductors and hardware equipment are prominent themes, including Demingli, Jinhaitong, and Dawei Shares. Demingli is newly held by Swiss Union Bank with a position worth 367 million yuan; Jinhaitong is held by Merrill Lynch International and Morgan Stanley; Dawei Shares is jointly held by Barclays, UBS, JPMorgan Chase, BNP Paribas, and Morgan Stanley, making it one of the stocks with the highest overlap among foreign investors. In hardware, companies like Xiechuang Data, Ultrasound Electronics, Stitek, and Chaoyang Technology are also active, indicating sustained foreign interest in electronic chains, especially in equipment, components, and niche manufacturing.

High interest also exists in machinery, electrical equipment, and auto parts. *ST Songfa is held by four foreign institutions; China Railway Construction Heavy Industry and Sanchao New Materials are also on the list. Electrical equipment includes Huaming Equipment, Baosheng Shares, Quoxin Shares, and Jiusheng Electric. In auto parts, Zhejiang Liming is held by Goldman Sachs International, JPMorgan Chase, Morgan Stanley, and Merrill Lynch International; Feilong Shares is a new position for Goldman Sachs Group.

Pharmaceuticals and biotech form another clear main line. Companies newly appearing include Xinnuowei, China Resources Sanjiu, Kunming Pharmaceutical, Dong’e E Jiao, Huangshan Capsules, and New World.

Swiss Union Bank increased its holdings of Xinnuowei by 6.8769 million shares, with a market value of 248 million yuan; Temasek’s Fudan Investment holds 7.7253 million shares of China Resources Sanjiu, slightly reduced but still valued at 220 million yuan; UBS Global Asset Management (Singapore) owns Dong’e E Jiao; Kuwait Investment Authority and Macau Monetary Authority are among the top ten shareholders of Kunming Pharmaceutical. Overall, foreign investment in the pharma sector is diversified across traditional Chinese medicine, manufacturing, and growth-oriented targets.

Beyond these main lines, sectors like chemicals, real estate, and consumer goods also have scattered presence. Baofeng Energy and Shengtun Mining maintain some presence in chemical and non-ferrous metal chains; Shahe Shares, Huitong Energy, Xidaomen, Tianhong Shares, and Hengdian Film & TV are distributed across real estate, commerce, and consumer sectors.

(Reporter Wu Yuqi, Cailian Press)