28 April Emerging Markets

China Industrials: Bullish Positioning Strengthens Further

Global Emerging Markets

China Industrials: More Funds Switch to Overweight

April 28th 2026

  • Active GEM funds have pushed China & HK Industrials to record highs across all ownership metrics, with near-universal participation and strong conviction positioning.
  • The sector stands out as the only clear overweight within China, in stark contrast to deeply out-of-favour areas like Real Estate.
  • A number of key names — including CATL, Sungrow, and Sieyuan Electric — are driving this move, reaching new highs in ownership.
  • Beneath this, the opportunity set is broadening, with a new wave of stocks gaining traction and forming an emerging second tier of ownership.

New Levels of Bullishness
Active GEM funds have pushed China & HK Industrials exposure to fresh highs. All core ownership metrics are now at record highs: average weights have risen to 3.28%, 91.5% of funds hold expsure, net overweights sit at +1.9%, and 79.6% of managers are overweight versus the benchmark.

Ownership Cycles
China & HK Industrials sit firmly in the top-right of our country/sector Ownership Cycle grid, reflecting sustained rotation and now record positioning. In contrast, China & HK Real Estate occupies the mirror image in the bottom-right, with managers taking an increasingly dim view of the sector.  It highlights how China is far from a homogenous position for managers – with Industrials the only conviction overweight among CHina’s other major sectors (see data pack).

Stock Allocations
At the stock level, Contemporary Amperex Technology (CATL) dominates positioning — held by 55.8% of active EM managers at an average weight of 0.9%, accounting for 28% of total sector exposure. Ownership falls away sharply beyond CATL, though a second tier of nine names sits in the 10–20% ownership range, led by Shenzhen Inovance Technology and CMOC Group.

The Drivers behind the record highs.
The charts below highlight the key stocks shaping the evolving China Industrials landscape. Chart 120 shows the names driving the latest leg higher, with CATL surging to new highs in ownership, Sungrow Power Supply rebounding, and CMOC Group trending steadily upwards.

Chart 121 makes clear this isn’t a one-way move — Full Truck Alliance, S.F. Holding, and Gree Electric have all rolled over from previous peaks.

Chart 122 identifies the next wave of potential leaders: stocks gaining traction but still relatively under-owned, including names like Greens Holdings, Sieyuan Electric, and Shenzhen Inovance.

Finally, Chart 123 highlights the sector’s “fallen angels” — companies now well below prior ownership highs after sustained declines in fund participation.

China & HK Industrials Market Intelligence Report
Click the link opposite for the full data pack, including full fund-level data, style analysis, stock over/underweights and more.

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