Foreigners Buying China Stocks After Tech, Education Selloff
(Bloomberg) -- Overseas investors have loaded up on Chinese stocks by the longest stretch since late April, following a rout last week that pushed the country’s benchmark index to its lowest in almost nine months.
Foreigners bought a net 21.5 billion yuan ($3.3 billion) over the past five trading sessions via trading links with Shanghai and Shenzhen, according to Bloomberg-compiled data. If they continue to buy on Wednesday, that will be the longest stretch since March.
The buying has followed a volatile week for shares in the world’s second-largest equity market, when a ban on profit making for swathes of the tutoring industry sparked broad concern that multiple industries could be targeted by Beijing. China’s CSI 300 Index fell a combined 6.6% on July 26 and 27 as investors scrambled to price in growing risks. While there were gains the next two days, the week’s drop was still the most in five months.
On Tuesday, Chinese equities were little changed even as Hong Kong’s Hang Seng Tech Index continued to tumble on concerns about further clampdowns. Institutional investors remain optimistic on the long-term healthy trend of the A-share market, with corrections an opportunity to buy quality assets, according to a report Tuesday by the Shanghai Securities News.
©2021 Bloomberg L.P.