Global Funds Back to Selling Chinese Stocks as Optimism Fades

  • Onshore shares set to see first foreign outflow since January
  • Chinese stocks have been retreating from a mid-May high
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Foreign investors are fleeing Chinese stocks once again, cutting short a four-month stretch of inflows as concerns over the slowing economy and earnings overshadow policy optimism.

Global funds sold 49.4 billion yuan ($6.8 billion) of onshore shares via the trading links with Hong Kong in June through Wednesday, putting the market on track for the first monthly outflow since January.