Sovereign wealth funds pour billions back into China

Sovereign wealth funds have sharply increased investments in mainland China and Hong Kong, with inflows reaching $14.2 billion in the first nine months of 2026, a 190% surge compared to all of 2025, according to consultancy Global SWF. This reverses a 54% plunge in 2025 driven by geopolitical tensions and economic concerns. Middle Eastern investors lead the resurgence, with Saudi Arabia's Public Investment Fund contributing $6 billion and Abu Dhabi Investment Authority $2.5 billion, together with Mubadala and Qatar Investment Authority accounting for nearly 70% of total inflows. Investors cite attractive valuations, opportunities in technology, biotechnology, consumer businesses, and advanced manufacturing, with some questioning if they are "missing out" on China. Other major funds, including Qatar, Norway, Singapore's Temasek, and Indonesia's Danantara, are also pursuing deals in areas like AI hardware, biotech, and consumer brands. Despite the rebound, China remains a small destination compared to Western markets, with the U.S. attracting $132.4 billion and Europe $44.6 billion in the same period.