OVERSEAS institutional investors were turning more attention to front-running small and medium-sized A-share players at the end of 2017, according to a report by the China Securities Journal yesterday.

The investment strategy of these investors is becoming clear as A-share firms release their 2017 performance reports. As of now, around 140 A-share listed companies have announced their 2017 annual reports.

Qualified Foreign Institutional Investors (QFIIs) owned shares in at least 10 of them.

Most of these firms featured a steady growth in their business performances in robust sectors. Distinct from the past, some growth stocks saw capital inflow from the QFIIs as well.

Also, in their market research, these investors were shifting focus to leading startups and small and medium-sized enterprises on the ChiNext board and SME board.

QFIIs have been a crucial force in China’s securities market. By the end of February, they had received an aggregate quota of US$99.16 billion from the Chinese Government.

With a good reputation for their investment track record at the A-share market, their preferences send significant signals as the domestic stock market undergoes adjustments.

For the third quarter of 2017, QFIIs increased their holdings of the A-shares by 19.8 billion yuan (US$ 3.13 billion), up by 17.3 percent quarter on quarter. Among these shares, those in the beverage and machinery sectors were the top gainers, according to a study by Zhang Gang, Southwest Securities Co. Ltd. (Xinhua)