Sovereign wealth funds are pouring billions of dollars back into mainland China and Hong Kong, reversing a sharp investment slump, with Middle Eastern investors leading the charge.
Investments into mainland China and Hong Kong surged to $14.2 billion in the first nine months of 2026, surging 190% compared with the funds' investments through the entire 2025, according to data provided to CNBC by Singapore-based consultancy Global SWF.
That's in stark contrast to a 54% plunge in 2025 from the prior year as geopolitical tensions and concerns over China's economic outlook weighed on investor sentiment.
The resurgence this year has been driven largely by Middle Eastern sovereign investors, with Saudi Arabia's Public Investment Fund alone accounting for $6 billion of the inflows, followed by Abu Dhabi Investment Authority's $2.5 billion, data from Global SWF showed.
Abu Dhabi's Mubadala and Qatar Investment Authority have invested $800 million and $600 million, respectively.