Funds investing in the Chinese stock market under the Qualified Foreign Institutional Investor (QFII) program made a slight adjustment in their investment strategies in August in accordance with the changing market evaluation.

Funds trading renminbi-denominated A shares started to lifted their holdings in cyclical stocks like nonferrous metals, coal, and banking in the month, according to the latest monthly report on A shares-trading QFII funds released by the Shanghai Securities News and Lipper, a fund data firm under the aegis of Thomson Reuters.

It signals that funds were trying to fine-tune their strategies that leaned toward the stocks in the consumption product and industry sectors previously, pointed out a market analyst.

In the month, funds added their holdings in stocks in financial sector, nonferrous metal sector, and bulk raw material sector, while lessening their positions in health care sector and commodity product sector, and according to the analyst. A Japan-based fund, for instance, raised its positions in mining stocks, insurance stocks, steel stocks, and coal stocks by three percentage points.

"As for funds based in Europe and the US, one of them ramped up holdings in the financial and raw material sectors, and another increased positions in financial stocks and bulk commodities," said the analyst.

Funds' new investment portfolio concentrates on the financial and real estate sectors currently, citing the Lipper report.

"QFII funds made a push with aggressive investment strategies in the first half of the year, highlighted by their strengthened allocation in high elastic stocks in the traditional sectors such as financial, real estate, and consumer products," said the analyst, "and that aggressive strategy was enhanced in the next few months, when funds were seen lighten holdings in commodity product stocks."

A Japan-based fund elevated its positions in Shanxi Xishan Coal and Electricity Power Co., Ltd. (SZSE: 000983), China life insurance Company Limited (SHSE: 601628), and Ping An Insurance (Group) Company of China Ltd. (SHSE: 601318). ABN AMRO TEDA Fund Management Co., Ltd., on the other hand, boosted its holdings in the mainland securities sector.

While buying into high elastic stocks, foreign funds kept their stable asset allocation strategy in the past months, added the analyst. Funds set up in the Asia-Pacific region, for instance, retained their focus on fast-growing stocks such as Weichai Power Co., Ltd. (SZSE: 000338) and Inner Mongolia Eerduosi Cashmere Products Co., Ltd. (SHSE: 600295).