QFII's latest holdings revealed! Favoring these stocks

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As the 2025 annual reports of A-share listed companies enter a busy disclosure period, the latest holdings movements of Qualified Foreign Institutional Investors (QFII) are gradually revealed.

Wind data shows that as of March 25, among the top ten circulating shareholders disclosed by listed companies for the end of 2025, there are well-known foreign institutions and sovereign funds such as Goldman Sachs, JPMorgan Chase, Temasek, and Abu Dhabi Investment Authority.

In terms of industry distribution, foreign institutional holdings are concentrated in segments like pharmaceuticals, machinery, semiconductors, and chemicals, which have technological barriers and long-term growth logic.

Middle Eastern sovereign funds increase their positions

In recent QFII holding disclosures, the movements of Middle Eastern sovereign funds have attracted attention. Abu Dhabi Investment Authority, Kuwait Investment Authority, and other Middle Eastern capital appeared on the list of increased holdings.

Specifically, by the end of Q4 2025, Abu Dhabi Investment Authority increased its holdings of Baofeng Energy by about 400k shares, with a total holding of approximately 44.81 million shares, corresponding to a market value of about 880 million yuan, ranking first among disclosed QFII holdings by market value. As a leading domestic modern coal chemical company, Baofeng Energy has maintained steady performance in recent years, with an attractive dividend yield.

By the end of Q4 2025, Kuwait Investment Authority increased its holdings of Kunming Pharmaceutical Group by about 857.8k shares, with a total of approximately 7.24 million shares, valued at about 90.92 million yuan. Kunming Pharmaceutical mainly focuses on botanical medicines and traditional Chinese medicine formulations. However, Abu Dhabi Investment Authority slightly reduced its holdings of China Railway Heavy Industry by about 612.5k shares during the same period.

Liu Gang, Chief Analyst of Overseas Strategy at CICC Research Department, stated that in recent years, Middle Eastern funds have significantly increased their participation in the Chinese market.

He analyzed that, besides traditional resource-based targets like Zijin Mining and Baofeng Energy, Middle Eastern sovereign funds are also paying attention to several other areas. First, the new energy industry chain, including globally competitive leading companies in photovoltaics and lithium batteries, aligns with Middle Eastern countries’ own transformation needs beyond traditional energy. Second, high-end manufacturing sectors, leveraging China’s manufacturing strength to share dividends and address core equipment and technology pain points for industry upgrades. Third, the tech sector, covering AI infrastructure, applications, and hard technology fields, aligns with the broader global trend of Middle Eastern capital increasing tech investments.

Increased holdings in storage chip concept stocks

Overall, in the Q4 2025 rebalancing, there was a clear divergence in QFII buying and selling. On the buy side, Goldman Sachs increased its holdings of Shengtuo Mining (rights protection) by about 1.3263 million shares, with a market value of around 320 million yuan; JPMorgan Chase added approximately 1.1911 million shares of Zhejiang Liming.

On the sell side, Singapore’s GIC sold over 3.56 million shares of Huaming Equipment; Macau Monetary Authority reduced holdings of Kunming Pharmaceutical by about 400k shares.

From the disclosed data, 30 listed companies’ top ten circulating shareholders include QFII figures. Among them, Shuhua Sports was bought or increased by four QFII funds; Quoxin Co., Ltd. was followed by three QFII holdings; Jin Haitong, Baosheng Shares, and Bomaike also gained new positions from two QFII funds each.

Storage chip concept stocks are a highly watched direction in this round of QFII rebalancing. Dawa股份 recently disclosed its annual report showing that in the top ten shareholders list before Q4 2025, five QFII firms—UBS, JPMorgan Chase, BNP Paribas, Morgan Stanley, and Barclays—appeared together. UBS, JPMorgan Chase, BNP Paribas, and Morgan Stanley each held about 857.8k, 612.5k, 713k, and 643k shares respectively. Barclays increased its holdings by about 835.9k shares in Q4 2025, with a total of about 1.8 million shares, ranking as the third-largest circulating shareholder. By the end of 2025, five of Dawa’s top ten circulating shareholders were held by QFII.

Another storage chip concept stock, Demingli, also attracted foreign investment. Wind data shows that by the end of Q4 2025, UBS added Demingli to its top ten circulating shareholders, holding about 3.27M shares.

More structural investment opportunities in A-shares

In terms of industry distribution, manufacturing remains the core focus for QFII, with holdings concentrated in pharmaceuticals, machinery, semiconductors, and chemicals—segments with technological barriers and long-term growth potential.

Several foreign institutions recently expressed the view that, despite ongoing global macroeconomic uncertainties, the structural investment opportunities in the A-share market are increasing.

“Continuing to increase allocation to China’s energy-related sectors is a wise move,” said Zhao Yaoting, Global Market Strategist for Invesco Asia-Pacific. He noted that although the global economy faces headwinds, China’s large-scale, diversified economy demonstrates strong resilience in facing extreme macro environments. Investments in energy security, food security, and supply chain independence over the years have significantly enhanced macroeconomic resilience.

Looking ahead, Goldman Sachs believes that the energy price fluctuations caused by Middle Eastern conflicts may prompt oil-importing countries to focus on strengthening energy supply security in the coming years. China, leading in key industries such as electric vehicles, batteries, and power generation equipment, could benefit from increased exports and growth after 2027 as global demand for these products heats up.