Investors think big as small-caps fuel rally

Small-cap stocks may be the champions of the equity market rally on the Chinese mainland, but foreign investors are playing it safe with a focus on bigger, better-known issues.

"It's a difficult time for value investors, who base their investment decisions on fundamentals," said Steve Yang, A-share strategist with UBS Securities Co Ltd.

Analysts said that A shares are underweighted by most overseas funds. What these investors are stashing in their portfolios are blue chip stocks with solid fundamentals and reasonable valuations that have also underperformed the benchmark indexes.