China Stocks See Record Low Foreign Inflows as Economy Struggles
- Inflows remain a fraction of previous years amid stock rout
- CSI 300 Index set for unprecedented third year of losses
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Overseas investors are set to record their smallest-ever annual purchases of Chinese stocks, discouraged by a plethora of concerns including a fragile economic recovery and geopolitical tensions.
Foreign funds bought just 44 billion yuan ($6.1 billion) of onshore stocks via trading links with Hong Kong on a net basis so far in 2023. That’s even after a dramatic surge in purchases Thursday amid year-end positioning adjustments, and marks the least since Bloomberg started compiling annual data for both Shenzhen and Shanghai bourses in 2017. During better times, investors would scoop up that amount in a month.