Global investors are rapidly shedding their holdings in China’s premier stocks in an unprecedented sell-off, suggesting that even China’s top industries are no longer favoured due to economic uncertainties.
From August 7 to 18, foreign investors unloaded Kweichow Moutai shares worth 6.2bn yuan (£676m), positioning the country’s prime spirits producer as the most traded stock through the Hong Kong connection.
This was trailed by sales of 4.7bn yuan each for prominent renewable company LONGi Green Energy Technology and the notable bank, China Merchants Bank.
International funds are retreating from the Chinese market at an alarming rate, shedding an estimated £7.3bn over twelve consecutive days up to Tuesday, marking the longest withdrawal spree since Bloomberg started recording such data in 2016.
This significant outflow is in response to China’s recent underwhelming interest rate adjustments earlier in the week.
China, the globe’s second-largest economy, is grappling with an extended downturn in the housing sector. As a result, its CSI 300 Index has been one of the poorest performers globally this month, showing a 7% decline. Currently, it hovers near its lowest point since the previous November.
