Foreign Investors Sold $9.8B of Chinese Stocks this Month

https://tokenist.com/foreign-investors-sold-9-8b-of-chinese-stocks-this-month/

In August 2023, foreign investors set a new record by divesting $9.8 billion in Chinese stocks, driven by escalating concerns over China's crumbling property market. This historic monthly sell-off highlights the crisis's impact on the local stock market, with offloaded stocks totaling 71.6 billion yuan ($9.8 billion), the highest since the mainland-Hong Kong stock trading link began in 2014.

Despite mainland institutional investors expressing interest in Chinese stocks, the market continues to struggle. While foreign investors hold under 10% of A-shares by market cap, their preference for top-weighted stocks in the CSI 300 index grants them substantial influence. Although the index increased 0.72% to 3,723, it remains down over 7% since July.

Rooted in China's property turmoil, responsible for a quarter of its economy, the sell-off follows Evergrande's bankruptcy protection filing due to a colossal debt exceeding $300 billion. As the property and broader economic concerns meld, experts caution that factors like tight loan conditions and muted consumer spending amplify the risk of an impending global recession.