Sovereign funds invest $14.2 billion in China and Hong Kong — CNBC
Sovereign wealth funds invested $14.2 billion in mainland China and Hong Kong during the first nine months of 2026. This is 190% more than the volume of their investments for all of 2025, CNBC reports, citing data from Singapore-based consultancy Global SWF.
The return of capital came after a decline: in 2025, sovereign wealth fund investments in China and Hong Kong fell by 54% compared with the previous year. Investor sentiment was then affected by geopolitical tensions and concerns about the outlook for China’s economy.
Investors from Gulf countries
Funds from the Middle East accounted for the largest share of inflows in 2026. Saudi Arabia’s Public Investment Fund invested $6 billion, while the Abu Dhabi Investment Authority invested $2.5 billion. Mubadala of Abu Dhabi invested another $800 million, and the Qatar Investment Authority invested $600 million.
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In total, four funds from Gulf countries accounted for nearly 70% of all sovereign investments in China and Hong Kong during this period. Investors are attracted by opportunities in Chinese technology companies, biotechnology, the consumer sector, and advanced manufacturing.
Betting on technology and the consumer market
Mubadala representative Andrew Wang said the fund sees attractive asset valuations and the potential of a large consumer market in China. In September, Mubadala announced the acquisition of a minority stake in Chinese chain Luckin Coffee as part of an approximately $1 billion deal together with Centurium Capital.
The Qatar Investment Authority and Norway’s sovereign wealth fund participated in Alibaba’s $10.2 billion share placement in August. Singapore’s Temasek is seeking opportunities in Chinese biotechnology, local consumer brands, and the production of artificial intelligence equipment. At the same time, China and Hong Kong remain a smaller destination for sovereign capital than Western markets: the United States attracted $132.4 billion in such investments in the first nine months of 2026, while Europe and the United Kingdom attracted $44.6 billion.
