Media365
US investors stepped up purchases of mainland and Hong Kong equities in the fourth quarter, while Chinese funds continued to channel money into US stocks, underscoring deep two-way capital ties despite geopolitical tensions.
Data from the US Treasury’s International Capital system showed that US investors were net buyers of US$9 billion worth of Asian equities in the last quarter of 2025, bringing total net purchases for the year to US$80 billion, according to a report from BNP Paribas.
Of that annual total, US$15 billion or about 19 per cent flowed into the mainland and Hong Kong markets, while Taiwan attracted US$12 billion, Japan US$35 billion, South Korea US$11 billion and India US$5 billion.
The fourth quarter marked a modest turnaround for Hong Kong and mainland equities, the French bank’s report said. US investors were net buyers in the second half and in the final quarter of 2025, reversing net selling seen in the second half of 2024 and the first half of 2025, it said.
Meanwhile, Asian investors continued to accumulate US stocks, recording net purchases of more than US$128 billion in 2025, the report said. Investors from mainland China and Hong Kong also shifted back to net buying in the fourth quarter of 2025, following extended periods of net selling throughout much of 2023, 2024 and the first half of 2025, it added.
The data came after both mainland and Hong Kong equities outperformed their US peers last year in a rally sparked by optimism over mainland technology capabilities after DeepSeek’s artificial intelligence breakthrough.
The CSI 300 Index, which tracks the largest mainland-listed companies, rose more than 17 per cent in 2025, while Hong Kong’s Hang Seng Index surged nearly 28 per cent. By comparison, the S&P 500 gained around 16 per cent.
