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By Dai Qi

The investment landscape of China's A-share market has seen changes since the beginning of this year due to the increasing ratio of foreign investments, the Shanghai Securities News reported on Friday.

According to a research report by Haitong Securities, one of the largest securities companies in China, by the end of July, the circulation value held by foreign investments in China's A-share market had accounted for about 6 percent in total, closer to that by the insurance industry, 6.7 percent, and the publicly offered funds, 8.4 percent.

However, the ratio of the circulation value held by publicly offered funds reached up to 40 percent at the end of September, 2007.

The rise and fall of different holders have manifested a change in the landscape of China's A-share market.

Currently, foreign investments have become an essential source of the incremental funds for China's A-share market.

Statistics from East Money Choice, a financial data provider in China, showed that as of Sept. 5, the net inflow of the northward capital had reached 222.6 billion yuan (about USD 32.5 billion), up by nearly 50 percent when compared to the same period last year and exceeding all the net inflows in 2017.

"In the next five to ten years, the ratio of A-shares held by foreign investments is expected to rise to between 5 percent and 10 percent, which means over 200 billion yuan (about USD 29.2 billion) would flow into China annually," said Yang Delong, chief economist of the First Seafront Fund.

Yang added that once the ratio of the circulation value held by foreign investments surpassed 20 percent, they were likely to become the largest institutional investors on the A-share market, which would change the landscape profoundly.

Moreover, the investment mindset will also be influenced in this circumstance.

According to the Shanghai Securities News, concerning current investment strategies, fund managers are now talking more about fundamental indicators.