["International Journal of Finance &Economics, EarlyView. ", "\nABSTRACT\nA growing body of research shows that firms are making increasing use of rhetorical nationalism. Using 2007–2024 China A‐share data, we examine how corporate rhetorical nationalism affects institutional investors' stock preferences. Results show rhetorical nationalism significantly increases overall institutional holdings, particularly among long‐term investors. Rhetoric about territorial sovereignty and national renewal strongly boosts institutional holdings, while anti‐foreign themes have a limited effect. Using institutional theory, we find rhetorical nationalism works through two channels: helping firms get resources and reducing risks. However, corporate nationalist rhetoric also pushes foreign investors away, which may hurt China's global trade integration. Our findings suggest investors should consider local culture in their strategies. Policymakers need to balance openness with national identity.\n"]