Foreign investment in the Chinese stock market decreased by 87% – Kommersant
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In the final months of 2023, foreign investment in the Chinese stock market fell sharply. Compared to August, when they reached their peak for the year ($33 billion), they fell by 87%, amounting to only $4.4 billion. Such calculations were reported by Financial Times with reference to data from a special platform for trading securities through the Shanghai and Hong Kong stock exchanges Stock Connect.
According to experts, such a sharp decline in investment is due to the fact that investors increasingly doubt the possibility of a rapid recovery of the Chinese economy. The Chinese stock market as a whole is also declining: while the American S&P 500 index has grown by almost 5% since the beginning of December, the Chinese CSI 300 has fallen by more than 3%.
In particular, investors are concerned Problems one of the country’s largest developers, Country Garden, which may reflect the difficulties in the real estate sector as a whole. “Trust issues extend beyond the real estate industry, although that is key. I mean consumer trust, business trust and investor confidence, both local and foreign,” said Wang Kee, director of investment and asset management at Hong Kong-based UOB Kay Hian.
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