Sovereign wealth funds ramping up allocation to Chinese assets

Attractive returns, openness to foreign investors spurring interest, study shows

Foreign financial institutions are showing growing confidence in China's economic prospects by increasing their exposure to Chinese assets, as the country's innovation-driven development and structural growth opportunities gain global recognition.

The optimism is supported by China's accommodative macroeconomic policies and its accelerating transformation in key sectors, such as advanced manufacturing, clean technology and digital innovation. These trends signal that China is positioning itself at the forefront of the next wave of global economic growth — a shift that international asset owners are increasingly unwilling to ignore.

According to the Global Sovereign Asset Management Study 2025, released on Monday by United States-based investment management company Invesco, 59 percent of the 83 surveyed sovereign wealth funds will increase their allocation to Chinese assets over the next five years.