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Global Investors Ease Back Into China Equities on Policy Bets

  • Foreign funds were net sellers of Chinese stocks in Jan.-May
  • More market watchers turning positive on China stocks recently
Updated on

Global investors returned in earnest to China’s stock markets in May, erasing much of the year’s earlier outflows, as investors bet that policy support and the emergence of key cities from Covid-lockdowns will spark a revival.  

They added 16.9 billion yuan ($2.5 billion) of Shanghai and Shenzhen shares via trading links this month, narrowing year-to-date outflows to just 1.2 billion yuan. Most of the selloff was in March -- when the war in Ukraine roiled markets and Shanghai entered lockdown.