{"id":1729,"date":"2025-10-01T07:24:55","date_gmt":"2025-10-01T07:24:55","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/chinese-stocks-are-on-fire-this-year-drawing-big-interest-from-foreign-and-domestic-investors\/"},"modified":"2025-10-01T07:24:55","modified_gmt":"2025-10-01T07:24:55","slug":"chinese-stocks-are-on-fire-this-year-drawing-big-interest-from-foreign-and-domestic-investors","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/chinese-stocks-are-on-fire-this-year-drawing-big-interest-from-foreign-and-domestic-investors\/","title":{"rendered":"Chinese stocks are on fire this year, drawing big interest from foreign and domestic investors"},"content":{"rendered":"\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108202547\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108202547\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000389701\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>When Hou Yujie isn&#8217;t convincing customers to rent traditional Chinese clothing for photos at the country&#8217;s famous Forbidden City, she and her friends are checking stocks.<\/p>\n<p>Hou recently put 10% of her money in the market. In just a few days, she earned one month&#8217;s salary \u2014 and she&#8217;s thrilled.\u00a0<\/p>\n<p>&#8220;Interest rates for bank deposits are so low I don&#8217;t even want to bother,&#8221; Hou said at her shop outside the Beijing tourist site. &#8220;Stocks are a hot topic right now.&#8221;<\/p>\n<p>Chinese stocks, once deemed univestable by many, are luring both local and foreign investors impressed by recent returns. The <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\">Shanghai Composite<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> hit a decade high earlier this month. Hong Kong&#8217;s <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\">Hang Seng<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> index is also up 30% in 2025, on pace for its biggest annual advance since 2017 \u2014 when it soared nearly 36%.<\/p>\n<\/div>\n<div>\n<div class=\"Collapsible-proliveCollapsableContainer\" role=\"button\" tabindex=\"0\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"256\" height=\"256\" viewbox=\"0 0 256 256\" aria-labelledby=\"title desc\" role=\"img\" focusable=\"false\" preserveaspectratio=\"xMinYMin\" class=\"Collapsible-stockChartIcon\"><title>Stock Chart Icon<\/title><desc>Stock chart icon<\/desc><g transform=\"translate(1.4065934065934016 1.4065934065934016) scale(2.81 2.81)\"><path d=\"M 87.994 0 H 69.342 c -1.787 0 -2.682 2.16 -1.418 3.424 l 5.795 5.795 l -33.82 33.82 L 28.056 31.196 l -3.174 -3.174 c -1.074 -1.074 -2.815 -1.074 -3.889 0 L 0.805 48.209 c -1.074 1.074 -1.074 2.815 0 3.889 l 3.174 3.174 c 1.074 1.074 2.815 1.074 3.889 0 l 15.069 -15.069 l 14.994 14.994 c 1.074 1.074 2.815 1.074 3.889 0 l 1.614 -1.614 c 0.083 -0.066 0.17 -0.125 0.247 -0.202 l 37.1 -37.1 l 5.795 5.795 C 87.84 23.34 90 22.445 90 20.658 V 2.006 C 90 0.898 89.102 0 87.994 0 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 65.626 37.8 v 49.45 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 23.518 L 65.626 37.8 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 47.115 56.312 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 42.03 L 47.115 56.312 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 39.876 60.503 c -1.937 0 -3.757 -0.754 -5.127 -2.124 l -6.146 -6.145 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 59.844 C 41.952 60.271 40.933 60.503 39.876 60.503 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 22.937 46.567 L 11.051 58.453 c -0.298 0.298 -0.621 0.562 -0.959 0.8 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 48.004 L 22.937 46.567 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><\/g><\/svg><\/p>\n<div class=\"Collapsible-proLivePlayerCloseOrExpand\"><img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\" class=\"Collapsible-dismissButton\" alt=\"hide content\"\/><\/div>\n<\/div>\n<p><iframe title=\"Shanghai Composite since 2015\" src=\"https:\/\/www.cnbc.com\/appchart?symbol=.SSEC&amp;dtLeft=2015-01-01&amp;dtRight=now&amp;type=mountain&amp;embedded=true&amp;$DEVICE$=undefined\" height=\"460\" scrolling=\"no\" loading=\"lazy\" style=\"border:0;width:100%\"><\/iframe><\/p>\n<p>Shanghai Composite since 2015<\/p>\n<\/div>\n<div class=\"group\">\n<p>Government signals are encouraging investors to jump in. \u00a0<\/p>\n<p>&#8220;There is a change of policy intention because of the deflationary pressure is getting more and more prominent,&#8221; said Hao Hong, CIO at Lotus Asset Management. &#8220;The policymakers felt that they need to do something\u00a0to refocus the government work on economic growth rather than minimize risk.&#8221;<\/p>\n<p>Chinese investors date the start of the rally, nicknamed the &#8220;9.24 performance,&#8221; to Sept. 24, 2024 \u2014 when the country&#8217;s central bank governor and other top financial chiefs held a rare coordinated press briefing, announcing measures to support the economy and the stock market.<\/p>\n<p>The authorities held a similar media briefing Monday, declaring China&#8217;s capital markets are expanding their &#8220;circle of friends&#8221; thanks to renewed interest by overseas investors.<\/p>\n<p>For the first time in four years, Cathie Wood&#8217;s Ark Investment Management funds reopened positions this week in Alibaba, according to a daily trading report.<\/p>\n<p>The government is also trying to push in more institutional money to make Chinese markets a store of wealth like U.S. stocks.\u00a0Regulators have mandated insurers and state mutual funds&#8211; traditionally on the sidelines\u2014 to increase their holdings of equities.<\/p>\n<p>Not only are Chinese retail investors taking cues from the government. They also have few other investment options.<\/p>\n<\/div>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108204478\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Chinese stock investor Hou Yujie at her store renting traditional Chinese clothes near the Forbidden City in Beijing. September 18, 2025.<\/p>\n<p>CNBC<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Retail investor push<\/h2>\n<div class=\"group\">\n<p>After a massive stock crash a decade ago, ordinary Chinese citizens have generally been wary of putting money in the stock market because they have been burned. But with the property sector in a protracted slump and restrictions on investments outside the country still tight, more are looking at the stock market again. Easing tensions in the U.S.-China trade war and Chinese progress in AI and chips have also boosted sentiment.<\/p>\n<p>&#8220;AI and drones have been developing fast in China. I hear there is great potential for those stocks,&#8221; Hou said.<\/p>\n<p>But transforming the mindset of everyday Chinese still could take a while.<\/p>\n<p>&#8220;Many of the retail investors still believe that it&#8217;s a gamble. It&#8217;s a casino.\u00a0No one believes that it&#8217;s a long term investment. It&#8217;s very different from the U.S.,&#8221; Hong said.<\/p>\n<p>Unlike in the U.S. where retail investors account for about 20% of trade, China&#8217;s average investors drive 90% of daily trading, according to HSBC data.<\/p>\n<p>That means the Chinese stock boom could quickly turn to bust.<\/p>\n<p>&#8220;As soon as I hear or sense the market going down, I&#8217;ll grab my money and run for my life,&#8221; Hou laughed.<\/p>\n<p><em>Subscribe <\/em><em>to CNBC PRO<\/em><em> for exclusive insights and analysis, and live business day programming from around the world.<\/em><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When Hou Yujie isn&#8217;t convincing customers to rent traditional Chinese clothing for photos at the country&#8217;s famous Forbidden City, she and her friends are checking stocks. Hou recently put 10% of her money in the market. In just a few days, she earned one month&#8217;s salary \u2014 and she&#8217;s thrilled.\u00a0 &#8220;Interest rates for bank deposits [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1730,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[421,270,1670,1669,1035,1528,424,374,191,268],"class_list":["post-1729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-big","tag-chinese","tag-domestic","tag-drawing","tag-fire","tag-foreign","tag-interest","tag-investors","tag-stocks","tag-year"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/1729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=1729"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/1729\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/1730"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=1729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=1729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=1729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}