Even though authorities stopped the market’s haemorrhaging and Shanghai has rallied back above 4,100, foreign investors have continued to sell Chinese stocks over the past week.
That’s what the latest ANZ/EPRF flow of funds report shows for the past week to July 22. ANZ currency strategist Khoon Goh said “equity outflows from China amounting to USD2.9bn.”
That’s a continuation of the seismic in-and-out flows of the past 6 weeks. It also follows last week’s $US5.6 billion worth of selling by foreigners. Interestingly foreigners were net investors in Chinese bonds to the tune of $US300 million over the past week.
Here’s the chart.