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.
The outflows have contributed to the stock market’s declines, with the MSCI China gauge falling into correction territory on Thursday. The CSI 300 Index of onshore shares has also slipped more than 6% since a mid-May high.
The recent downtrend marks a reversal from earlier this year, when bets that Beijing would take bigger steps to support the economy drove a bull run in Chinese stocks. While some investors are holding on to hopes that the July 15-to-18 third plenum will offer new impetus, the bar is high for Beijing to impress investors and revive sentiment.
“There was some exuberance around policy support particularly for the property sector and the state of the economy, leading to a meaningful rally,” said Xin-Yao Ng, director of investment at abrdn. “After the initial euphoria, I feel investors have started to sit back and look more closely at these and realized that things are much less clear cut than they had thought.”
Most firms place a limit on advisors’ sales of alternative investments to clients in the neighborhood of 10% a customer’s net worth.
Those jumping ship include women advisors and breakaways.
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The agent, Todd Bernstein, 67, has been charged with four counts of insurance fraud linked to allegedly switching clients from one set of annuities to another.
“While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the State,” Justice Peter Moulton wrote, while Trump will face limits in his ability to do business in New York.
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Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
