China Fund Exodus Accelerates as Further Yuan Weakness Expected
- Buying of Hong Kong funds more than doubles to $1.2 billion
- Outflows accelerate amid weaker yuan, volatile stock market
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China’s capital outflow through cross-border sales of funds is accelerating amid expectations the yuan will weaken further.
Mainland investors’ accumulative net buying of Hong Kong-registered public funds under the mutual recognition of fund program more than doubled to 7.8 billion yuan ($1.2 billion) as of Aug. 31 from a month earlier, according to data released by the State Administration of Foreign Exchange on Wednesday. That’s almost 96 times the sales of mainland funds in Hong Kong.