Overseas capital has poured into China’s hard technology champions at an unprecedented pace, driving the market value of their mainland equity holdings to an all-time high by the end of this year’s second quarter.Global investors have increased their exposure to China’s advanced manufacturing and technology companies, helping push the northbound holdings under the mainland-Hong Kong Stock Connect scheme to a record high of 3.13 trillion yuan (US$461.65 billion) by the end of June, according to financial data provider Choice, the highest quarterly level since the launch of the programme.The latest figures point to a broader repositioning of overseas portfolios towards industries linked to Beijing’s push for technological advancement and self-sufficiency, marking a departure from the consumer and financial stocks that had traditionally dominated foreign holdings.Technology and advanced manufacturing companies now account for seven of the 10 largest foreign-held A-share positions, including the top three.Battery maker Contemporary Amperex Technology Co Limited (CATL), artificial intelligence optical-module supplier Zhongji Innolight and semiconductor equipment manufacturer Naura Technology ranked top three among those with the biggest holdings by overseas investors.Two people look at a battery model during CATL Tech Day on April 21, 2025. Photo: AFPGoldman Sachs said the sector rotation reflected investors’ growing preference for onshore “hard-tech” companies over offshore “soft-tech” platforms, reiterating its tactical preference for A-share technology names in a July 13 research note.