Foreign investors pulled out of Chinese onshore stocks for a fourth straight month in November, extending a record exodus amid lack of conviction about the strength of recovery in the world’s second-largest economy.
Overseas traders offloaded a combined 1.78 billion yuan (US$250 million) of yuan-denominated stocks on mainland China’s bourses through the exchange link programme with Hong Kong, adding to the 127 billion yuan of net selling for the previous three months, according to Bloomberg data. The four months of outflows represent the longest such streak on record since the Shenzhen exchange was added to the cross-border investment scheme in December 2016.
The latest batch of economic data shows that China’s economic recovery is fragile and uneven. An official purchasing managers’ index indicated that the manufacturing industry shrank more than expected in November.
