Chinese stocks saw their largest monthly outflows of 2023 from global long-only funds in December amid heightened geopolitical tensions and a dismal year all round.
China and Hong Kong equities saw a combined net outflow of $3.8 billion from active long-only managers last month, the third-largest monthly outflow on record, Morgan Stanley’s quantitative research team said in a report on Tuesday.
“Both investors’ redemptions from equity funds and portfolio managers’ rebalancing to deepen underweight on China contributed to the outflows,” Morgan Stanley analysts led by Gilbert Wong said.
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China and Hong Kong stocks ended 2023 as the worst performers among the world’s major indexes, dragged down by geopolitical risks, a sluggish economic recovery and policy uncertainties.
China’s benchmark blue-chip CSI300 Index slumped 11% in 2023 while…
