Foreign investors are snapping up Chinese A-shares as 2023 starts, pinning hopes on the reopening of China's giant economy to reignite global growth. Analysts expect overseas capital inflows to exceed 2022, supported by China's multi-pronged measures to power its economic recovery.
Foreign capital flows into Chinese equities have gotten off to a strong start in 2023. As of Thursday's market close, net capital inflows through the northbound trading system into A-shares listed on major bourses on the Chinese mainland exceeded 12.7 billion yuan ($1.85 billion).
Since trading resumed on Tuesday, several companies, including Centre Testing International Co and Chacha Food Co, have seen their foreign ownership reach the ceiling of 28 percent, which prompted stock exchanges to issue notice suspending further purchases by overseas investors.
Foreign capital inflows into A shares in 2023 will be better than last year, Ethan Wang, head of investment strategy at Standard Chartered China, told the Global Times in an interview on Thursday.
