Middle Eastern capital enters Huaxia Fund, and international attention to Chinese assets is rising.

The transfer of 10% equity of Huaxia Fund is steadily progressing. Recently, information from the China Securities Regulatory Commission showed that Qatar Holding LLC has been approved to become a shareholder holding more than 5% of Huaxia Fund's shares, and there are no objections to Qatar Holding acquiring 23.8 million RMB of Huaxia Fund's capital. In June 2024, industry insiders revealed to First Financial that the two parties had reached a preliminary consensus on the acquisition and were in the stage of CSRC approval. Now, after nearly a year, the matter has finally been officially approved. Behind the top domestic public offering institutions being "targeted" by Middle Eastern capital is also the trend of foreign institutions accelerating their layout in the Chinese capital market in recent years. Investors from institutions like UBS believe that the return of foreign capital may be a key trend in the coming months, and Hong Kong stocks may be the first to benefit from the inflow of long-term funds due to the valuation advantage of the Chinese stock market and the low allocation. "Through continuous intensive communication with many overseas investors, we deeply feel that the international market's attention to Chinese assets is steadily increasing." said Fang Dongming, head of UBS Global Financial Markets in China, indicating that both quantitative funds and other medium to long-term overseas investors are eager to participate deeply in China's capital market.