TCEHY - The Great China Unwind: Foreign Investors Pull $29B Out Of Chinese Equity Markets In 2023 | Benzinga
Nearly 90% of the foreign investment inflows into Chinese equity markets in 2023 has been withdrawn as sentiment crumbles amid concerns over the country’s growth trajectory and the impact of losses from the real estate sector.
Data gathered from Hong Kong Stock Connect and interpreted by the Financial Times, showed that since peaking at $33 billion in August, net foreign investment in China-listed shares has dropped 87% to just $4.3 billion.
China stock indices have had a tough year as growth concerns have built despite efforts by the People’s Bank of China to boost confidence in the financial system.
The Shanghai Composite is down 4.4% over the year, while the China A50 index has slumped 12% and the Hang Seng has fallen nearly 14%.
Meanwhile, the heaviest-weighted exchange traded funds that track China shares are down by similar amounts: BlackRock’s iShares MSCI China EFT (NYSE:MCHI) is down 13.8% year to date, while iShares China Large-Cap ETF (NYSE:FXI) is down 15.4% over the year.