(Yicai Global) May 27 -- The Shenzhen Stock Exchange has for the first time ever alerted overseas investors about the danger of reaching an upper limit of ownership in three Chinese firms, including Midea Group, Centre Testing International, and Suofeiya Home Collection.

Foreign investors held 27.3 percent of consumer electronics maker Midea's shares, 26.3 percent of the third-party certification and testing firm's stock, and 26.2 percent of the furniture manufacturer's equity as of May 25, the bourse said in a statement yesterday. The limit is 30 percent while already at 28 percent, new positions will be prohibited.

Chinese markets seem to have continued to attract overseas capital via the Hong Kong Stock Connect programs amid global volatility caused by Covid-19. By yesterday, net inflows reached CNY20.8 billion (USD2.9 billion) for this month. However, Shanghai's and Shenzhen's two main stock benchmarks have fallen in the past two full weeks.

Earlier this year, foreign investors had bought 28 percent of Foshan-headquartered Midea's stock, which triggered a two-month ban for overseas buyers. When that ended in March, the ratio had dropped to less than 26 percent.

The warning seems to have encouraged domestic buying. Midea's stock price [SHE: 000333] opened 0.43 percent up at CNY58.25 (USD8.20) this morning.

Shenzhen-based CTI's shares [SHE: 300012] started the day 0.28 percent higher at CNY18.04.

Guangzhou-headquartered Suofeiya's equity price [SHE: 002572] rose 1.3 percent to CNY23.3.

Editor: Emmi Laine