Sovereign Wealth Funds Invest $14.2 Billion in China

Sovereign wealth funds invested $14.2 billion into mainland China and Hong Kong during the first nine months of 2026, marking a 190% increase over the total investments made in 2025. This recovery follows a 54% decline in 2025 that was driven by economic concerns and geopolitical tensions.

Middle Eastern investors drove the majority of the rebound, with four Gulf funds accounting for nearly 70% of the total inflows. The Public Investment Fund of Saudi Arabia led the surge with $6 billion, followed by the Abu Dhabi Investment Authority with $2.5 billion, Mubadala with $800 million, and the Qatar Investment Authority with $600 million. These funds targeted sectors including biotechnology, AI-related hardware, advanced manufacturing, and consumer brands.

Other active participants included the sovereign wealth funds of Norway, Indonesia, and Singapore. Temasek Holdings (Private) Limited invested in the IPO of Zhongji Innolight, while Indonesia's Danantara expanded cooperation in robotics, healthcare, and AI. Despite the significant growth, these inflows remain small compared to the $132.4 billion attracted by the United States during the same period.