China’s Stock Market Weathers Heavy Foreign Outflows

Foreign investors have unloaded $ 9.5 billion of mainland Chinese stocks this month, reflecting a reassessment of geopolitical risk following the financial isolation of Russia.

The outflow as of March 24, via a trading link with Hong Kong known as Stock Connect, is on pace to be the second-largest monthly drawdown since the program began in 2014. The biggest occurred in March 2020 when Covid-19 rattled global markets and offshore investors sold a net $ 10.6 billion of onshore stocks.

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