Overview
US investor allocations into Chinese and Hong Kong equities increased sharply during the December-February window, marking the largest three-month net inflow recorded in more than three years, according to data highlighted by BNP Paribas strategist William Bratton.
The numbers
BNP Paribas reports that US residents directed $14 billion into China and Hong Kong stocks over the December through February period. The underlying dataset comes from the US Treasury International Capital system, which tracks investments by US residents in Asian equities when those holdings are routed through US custodians.
That activity coincided with an all-time high in US holdings of equities listed in Hong Kong and China, which BNP Paribas says reached $466 billion.
Interpretation from BNP Paribas
BNP Paribas frames the recent inflow as a possible shift in behaviour among US capital owners. The bank notes the inflows could reflect renewed willingness to allocate more capital to Chinese equities after a period of sizeable net selling that stretched from 2021 through the first half of 2025.
In analyst commentary, William Bratton described equity flows between China, Hong Kong and the United States as moving onto an upward path, following years in which both sides were net sellers.
Context and constraints
The data cited are specific to US-resident holdings recorded via US custodians and compiled in the US Treasury International Capital system. BNP Paribas has used those figures to draw its conclusions about investor behaviour and the potential directional change in cross-border equity flows.
What this means for markets
The reported increase in US allocations to China and Hong Kong equities suggests renewed demand from US investors for exposure to those markets, at least over the recent three-month window. BNP Paribas characterises the movement as significant given the prior period of large outflows.
Note: The reporting here reflects the data and interpretations provided by BNP Paribas and the US Treasury International Capital system; it does not introduce additional figures or claims beyond those sources.