(Yicai Global) Sept. 2 -- Foreign institutional investors expanded their portfolio of Chinese stocks by 74 percent in the second half to add 152 new firms, The Paper reported today.

Qualified Foreign Institutional Investors, which are foreign investors licensed to buy Chinese yuan-denominated stocks on the mainland, had holdings in 358 stocks as of June 30, up from 206 in the previous quarter, the report said.

Of the 152 new picks, China Pacific Insurance Group had the biggest buy in, selling CNY14 billion (USD2 billion) worth of shares to US banking behemoth Citigroup’s brokerage Citigroup Global Markets. Another 12 stocks sold at least 10 million shares each to the QFIIS.

As of June 30, QFII’s held CNY176.8 billion (USD25.9 billion) worth of China-listed stocks, a 70 percent increase from the value held at the end of the first quarter, China Fund News reported.

Four Chinese companies have CNY10 billion (USD1.5 billion) worth of shares that are foreign-owned and another 27 have over CNY1 billion held by overseas investors.

The Bank of Ningbo is the most favored Chinese stock with 20.03 percent of equity foreign-held, the most among China’s listed companies. Singapore’s OCBC Bank holds CNY29.6 billion (USD4.4 billion) worth of shares, same as it did in the first quarter.

Medical device maker Lepu Medical Technology also has nearly 5 percent of its shares held by six foreign firms.

Foreign investors increased their holdings in 91 Chinese stocks in the second quarter. China State Construction Engineering Corp was the favorite with an additional 0.38 percent of equity sold to overseas traders.

Of those that pared their stakes, Singapore’s sovereign wealth fund GIC sold 72.5 million shares in steelmaker Baoshan Iron and Steel, the biggest reduction

Home appliance manufacturer Shanghai Flyco Electrical Appliance, smartphone maker Shenzhen Transsion Holdings, forklift truck producer Anhui Heli, clinical research service firm Hangzhou Tigermed Consulting and network security solutions provider Venustech Group were also hot favorites.

Editor: Kim Taylor