Global funds pull back from Chinese stocks

Global funds pull back from Chinese stocks
China's slowing economy and earnings are in focus.
JUN 28, 2024
By  Bloomberg

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.” 

Latest News

Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034
Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034

New report shows dimmed outlook for benefits to retirees and disabled Americans, creating further pressure for federal tax hikes or more borrowing.

NY Republican Stefanik presses SEC to probe Harvard bond sale
NY Republican Stefanik presses SEC to probe Harvard bond sale

Open letter to SEC Chair Paul Atkins questions whether the Ivy League university withheld material information prior to its $750 million taxable bond offering.

Ex-LPL leader re-emerges at The Wealth Consulting Group
Ex-LPL leader re-emerges at The Wealth Consulting Group

The Las Vegas-based hybrid RIA overseeing $8.8 billion in assets has named Andy Kalbaugh president to help scale its advisor platform.

Envestnet extends investment offerings with new alts model portfolios
Envestnet extends investment offerings with new alts model portfolios

The wealth tech giant – in collaboration with Fidelity, BlackRock, State Street, and Franklin Templeton – is offering its advisor and wealth firm users more ways to diversify.

Just as wealth industry M&A was picking up, economic uncertainty could kill it again
Just as wealth industry M&A was picking up, economic uncertainty could kill it again

Deal volume increased post-election but now caution has taken over.

SPONSORED RILAs bring stability, growth during volatile markets

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave