As China’s A-share listed companies release their 2026 semi-annual reports, the Q2 portfolio positioning of Qualified Foreign Institutional Investors (QFII) is gradually surfacing. Data shows foreign capital aggressively deployed into the new energy, semiconductor, and AI computing power supply chains during the quarter, with UBS Group’s blockbuster 10 billion-plus yuan stake in CATL (300750.SZ) standing out as the headline move. However, the latest shareholder registry reveals that this billion-dollar position was rapidly trimmed after the quarter ended, drawing intense market scrutiny to foreign investors’ short-term trading mentality.

Billion-Dollar Build, Then Swift Exit: UBS’s Short-Term Play Sparks Debate

According to statistics from DataBao, a platform under Securities Times, as of semi-annual reports disclosed through August 5, QFIIs collectively appeared among the top 10 tradable shareholders of 44 A-share stocks at the end of Q2, holding a total of 264 million shares with a combined quarter-end market value of 17.36 billion yuan (approximately $2.6 billion). Among these, 23 were new positions, with new holdings totaling 13.4 billion yuan (approximately $2.0 billion), indicating a relatively active deployment appetite from foreign capital during the quarter.

By market value, CATL and Hongfa Technology (600885.SH) emerged as the two core heavyweights in the QFII portfolio, with quarter-end holdings both exceeding 2 billion yuan (approximately $296.3 million). CATL saw UBS Group initiate a massive new position of 27.37 million shares in Q2, with a quarter-end market value of 10.76 billion yuan (approximately $1.6 billion). This marked the first time in over four years that the stock attracted a foreign holding of this scale; the last comparable instance dates back to Q3 2021, when Hillhouse Investment held a CATL position worth 22.3 billion yuan (approximately $3.3 billion).

However, the stability of this billion-dollar stake was quickly tested. According to CATL’s shareholder registry updated on July 30 due to a share buyback, UBS Group had already exited the top 10 tradable shareholders list as of July 24. Based on the 10th largest tradable shareholder’s holding of 23.89 million shares, UBS Group completed a reduction of at least 3.47 million shares after Q2 ended. This means foreign capital swiftly adjusted this billion-dollar investment within just a few weeks, underscoring a pronounced short-term trading character.

Hongfa Technology Draws Cluster of Four Foreign Institutions; High-Growth Sectors in Favor

In contrast to the “fast in, fast out” pattern seen with CATL, relay leader Hongfa Technology presented a picture of clustered foreign institutional interest. At the end of Q2, Hongfa Technology counted four QFIIs collectively holding 62.10 million shares, with a market value of 2.14 billion yuan (approximately $317.4 million). Among them, Goldman Sachs International, BNP Paribas, and UBS Group were all new entrants during Q2.

Hongfa Technology delivered strong first-half results, with revenue reaching 11.02 billion yuan (approximately $1.6 billion), up 32.05% year-on-year, and net profit attributable to shareholders hitting 1.16 billion yuan (approximately $171.3 million), up 19.89% year-on-year. The company’s power relay and signal relay businesses, applied in consumer electronics, grew rapidly with order books remaining full. Institutions broadly anticipate the company will sustain high growth momentum for the full year.

Beyond these two heavyweights, eight other stocks — Yaxia Integration (603929.SH), Xiandao Jidian, CSSC Special Gas (688146.SH), Hesheng New Materials, Fuman Microelectronics (300671.SZ), Hewang Electric, Espressif Systems (688018.SH), and Shengtun Mining — each recorded QFII quarter-end holdings exceeding 200 million yuan (approximately $29.6 million). Foreign capital’s coverage spanned multiple high-growth sectors including computing power engineering, specialty gases, semiconductors, and power equipment.

Year’s Top Bulls Feature Foreign Footprints; CSSC Special Gas, Yaxia Integration See Precision Positioning

Among the 23 new Q2 positions, several emerged as the year’s star performers, once again validating foreign investors’ stock-picking acumen.

CSSC Special Gas, which has surged over 600% year-to-date, saw JPMorgan Chase initiate a new position of 1.27 million shares in Q2, with a market value of 445 million yuan (approximately $65.9 million). This marks only the second time since its listing that the stock has attracted a QFII institution. Addressing intense market focus on price increases for its core product tungsten hexafluoride, CSSC Special Gas disclosed during investor meetings that price adjustments are being implemented in two phases: the first phase involved cost-pass-through adjustments completed at the end of March; the second phase, a supply-demand-driven independent pricing model, officially took effect from Q3, with the new mechanism already operational.

Yaxia Integration, positioned along the AI computing power supply chain, also attracted a new position from Goldman Sachs International, holding 2.22 million shares with a market value of 604 million yuan (approximately $89.5 million). As a high-end cleanroom engineering service provider, Yaxia Integration is a deep beneficiary of the wafer fab expansion wave. Institutional analysis indicates that cleanrooms account for roughly 15% of total wafer fab investment and represent a front-end link in the expansion cycle, meaning order prosperity materializes first. The company posted first-half net profit of 490 million yuan (approximately $72.6 million), surging 204.80% year-on-year, while also rolling out a generous dividend plan of 16.50 yuan per 10 shares (pre-tax).

Earnings Breakout Plays Win Foreign Favor; Resource Cyclicals Also Attract Interest

From an earnings perspective, multiple stocks in the QFII new-position portfolio delivered explosive first-half profit growth. Shengda Resources (000603.SZ), Fuman Microelectronics, Haozhi Electromechanical, and Yaxia Integration all posted year-on-year net profit increases exceeding 200%.

Shengda Resources recorded first-half net profit of 390 million yuan (approximately $57.8 million), skyrocketing 456.46% year-on-year. Goldman Sachs International initiated a new position of 5.52 million shares in Q2, with a market value of 128 million yuan (approximately $19.0 million). The company holds multiple mining subsidiaries including Yindu Mining and Jinshan Mining, with mineral reserves of approximately 13,000 tons of silver, 35 tons of gold, and 1.64 million tons of copper — representing substantial precious and base metal resource advantages.

Overall, QFIIs’ Q2 positioning balanced high-growth tech sectors with resource cyclical plays. However, on some of the billion-dollar-scale positions, foreign capital has already shown signs of subsequent trimming. Whether UBS Group’s rapid adjustment of its CATL stake represents profit-taking short-term trading or a reassessment of the new energy sector’s valuation or fundamental shifts remains to be verified by Q3 reports. Foreign capital’s operations in China’s A-share market are increasingly demonstrating greater flexibility and short-term trading characteristics, a trend that could have profound implications for market participants’ strategy choices.