New drivers steering China equities


DESPITE the strong recovery in both onshore and offshore China equities over the past two years, investors have largely remained underweight, unconvinced that the stock market rally is sustainable.

On an asset-weighted basis, global active mutual funds underweight China by 340 basis points (bps) versus their benchmarks at the end of September 2025 (versus underweight by 320 bps at the end of June 2025).

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