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China sees revival of foreign investors through IPOs, convertibles: UBS
The trend is part of a broader recovery of interest in Chinese assets from investors overseas
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Karen Tianin Beijing
Foreign investors are returning to Chinese assets through convertible bonds and IPOs, helping fuel a fundraising rebound in Hong Kong as global investors seek exposure to the country’s artificial intelligence (AI), semiconductor and advanced manufacturing sectors.
According to estimates by UBS, Chinese companies raised about US$43 billion through equity capital market transactions in Hong Kong in the first five months of 2026, up from US$28 billion a year earlier. Convertible bonds have emerged as one of the biggest beneficiaries of the trend, with issuance reaching US$14.2 billion and surpassing the US$9.6 billion raised through traditional share placements.
The growing popularity of convertible bonds appears to be part of a broader revival in international interest in Chinese assets.
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“The discussion has shifted from whether to invest in China to how to allocate capital to China,” Janice Hu, China country head of UBS AG and chairwoman of UBS Securities, said at a media briefing on Thursday.
Qi Sheng, an analyst at Orient Securities said that “long-term capitals are expected to continue boosting China assets against the backdrop that the risk of global growth is rising and US dollar assets are under pressure under the geopolitical influence.”
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The surge in demand has enabled issuers to secure unusually favourable financing terms. Since the second half of 2025, lower funding costs have enabled a growing number of Chinese companies to issue zero-coupon and even negative-yield convertible bonds, according to Hu.
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