by Beth Brearley from interactive investor, 29th October 2025:
China equity funds were on a roll over the summer thanks to a recovery in China’s markets..
A series of policies introduced by the Chinese Communist Party to encourage consumer spending and stimulate growth have also played a major part in driving performance, as has China’s new pro-business stance, which includes reforms to Company Law, efforts to lower barriers for foreign investors, and championing the private sector. A prime example of this is in the tech sector..
China is now moving towards self-reliance in AI, but James Carthew, head of investment companies at QuotedData, warns that it could take some time for China to catch up with the US, and separating the wheat from the chaff will be the challenge for investors.
“Some of the companies that are riding high on the back of investor interest in the Chinese tech sector may turn out to be duds,” he says. “However, China will likely end up with some world-leading companies in many sectors – Contemporary Amperex Technology Co in batteries, for example.”
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