Foreign Investors Are Getting Destroyed In China

You know that the Shanghai market has been weak, but the trouble is worse if you look beyond the Shanghai Composite.

China’s B shares index contains the 53 Chinese companies that foreigners are allowed to invest in.

As Alphaville notes, that index s getting absolutely punished. Concerns about fraud (reverse mergers) have really spooked the entire scene.

In short, its like this:

  • -12.8% last week.
  • -18% since May.

In the meantime, the index still lags (on the downside) the gigantic plunge seen in Bloomberg’s reverse merger index, though it’s catching up fast.

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