By Tang Guhan
The net inflows of foreign funds amounted to 131.693 billion yuan since the beginning of the year, among which 50.851 billion yuan worth of foreign funds flowed into the domestic stock markets in May, as reported by the China Merchants Securities.
The Chinese stock markets have seen a flurry of foreign investments stimulated by the inclusion of the A shares into the MSCI indexes.
The investments for added funds focused in the areas of food and drinks, banking, medicine and other consumer goods.
Specifically, China's leading brewery Kweichow Moutai ranked first in the foreign investment volume with an amount of 4.63 billion yuan, followed by another liquor maker the Wuliangye Group with 4.1 billion yuan in May.
While the sell-out stock pointed to the Shanghai Airport Authority, who were sold an aggregated 500 million yuan worth of stocks by foreign investors in May.
The data indicated that the greatest enthusiasm for buying in the A shares was the Special Segregated Account (SPSA). The SPSA has opened up 4,000 accounts as of now, according to analysts.
Xie Zhengbin, the managing director of the MSCI, noted that the foreign investors have put in more time and resources into research in the Chinese A shares market.
"The access to China's A shares market has been significantly improved for foreign investors in recent years, and foreign investors are learning more and more about the Chinese stock markets," Xie added, "the inclusion of the China's A shares into the MSCI will introduce multiple investment opportunities and increase foreign investors' yields by risk diversifications."
