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Sovereign wealth funds invested US$14.2 billion (HK$110.76 billion) in mainland China and Hong Kong in the first nine months, a 190 percent surge over the funds' full-year investments in 2025, driven mainly by Middle Eastern investors, CNBC reported on Thursday.
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This came as interest grew among sovereign investors in Chinese technology, biotechnology, consumer businesses and advanced manufacturing, aiming to seize opportunities in Chinese competitive sectors, the report said.
The robust performance of sovereign investment during the nine months this year contrasts with the 54 percent year-on-year decline recorded in 2025, when geopolitical tensions and concerns over China's economic outlook dampened investor sentiment, according to the report, citing data from Singapore-based consultancy Global SWF.
Among the investments in mainland China and Hong Kong, Saudi Arabia's Public Investment Fund contributed US$6 billion, while Abu Dhabi Investment Authority invested US$2.5 billion.
Coupled with US$800 million and US$600 million investment from Abu Dhabi's Mubadala and Qatar Investment Authority, the four Gulf wealth funds accounted for nearly 70 percent of sovereign inflow into China and Hong Kong during the period.
Singapore's Temasek chief investment officer Rohit Sipahimalani said at the recent Milken Summit that biotechnology stands out as a particularly exciting sector for the fund to invest in China, with local consumer brands also holding strong potential.
He further noted that China's rising competitiveness across the AI hardware supply chain could see Chinese manufacturers increasingly challenge global players.
Temasek was among the cornerstone investors in Chinese optical-components manufacturer Zhongji Innolight's (3308) HK$53.41 billion Hong Kong initial public offering in July - Asia's second-largest share sale this year.
In August, Qatar Investment Authority and Norway's sovereign wealth fund also joined Alibaba's (9988) US$10.2 billion share offering.
