Foreigners Can Soon Own More China Stocks. But No One Wants Them

  • A-share inclusion factor will double to 10% in May review
  • Overseas investors have sold $2.5 billion A shares this month
Photographer: Qilai Shen/Bloomberg
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Overseas investors can soon own more Chinese stocks -- the trouble is they don’t seem to want them.

Foreigners are dumping mainland-listed shares at a record pace, just as MSCI Inc. prepares to expand their weighting in its benchmark indexes. Already this month, 17.4 billion yuan ($2.6 billion) of A shares have been sold through trading links with Hong Kong, putting May well on track to surpass the 18 billion yuan outflow in April.