Trading in China’s onshore equity market is accelerating, with sector-themed exchange-traded funds drawing sustained inflows since July and new equity-fund issuance rebounding, according to market data compiled on 12 August. In a display of confidence, several large state-backed public funds have begun purchasing units of their own equity products. At the same time, more than 100 high-performing A-share funds have imposed subscription caps over the past month to temper a surge in retail demand as mainland benchmarks set fresh highs. Overseas investors are also expanding positions. Foreign ownership in power-equipment maker Sieyuan Electric reached 28.07 percent late last month, triggering a temporary purchase suspension under mainland rules that cap foreign holdings at 30 percent. Precision-gear specialist Shuanghuan Driveline, transformer maker Huaming Power Equipment and relay producer Hongfa Technology are among other stocks approaching the limit, with shareholders that include Morgan Stanley and Temasek Fullerton Alpha. Analysts attribute the renewed interest to expectations of a global liquidity inflection point, a softer US dollar and relatively low valuations in Chinese blue chips. Industry leaders such as Ping An Insurance, Wuliangye and Kweichow Moutai each had more than 80 foreign institutional investors on their registers at end-June, underscoring the breadth of international participation in the latest rally.