Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. HOMEPAGE

After piling into Chinese stocks last week global investors dumped them madly this week

The volatility in foreign investor appetite for Chinese stocks continues according to the latest report of Asia Pacific fund flows from the ANZ Bank.

Advertisement

Citing data from EPFR Global, ANZ strategist, Khoon Goh said that after buying US$17 billion (£10.8 billion) of Chinese stocks in the previous two weeks, US$12.47 billion (£7.9 billion) alone in the week before, offshore investors sold Chinese stocks aggressively in the week ending July 15 with $US5.6 billion (£8.7 billion) in sales.

ANZ China stock flows
A huge amount of money has flowed both in and out of China's stock markets in recent weeks. Business Insider Australia/ANZ Bank

Shanghai stocks are up again today after a mid-week hiccup in Beijing’s stock market rescue efforts. But the volatility seen in the market and now in fund flows, is leading to potentially dangerous instability.

In what looks like a paradigm shift in foreign investor assessment of risk in Chinese stocks ANZ’s Goh said (emphasis ours):

The volatility in e Chinese equity market is certainly resulting in big moves in investor flows. In the past few months, flows in and out of China equity funds have been between -2% and 4% of AUM, compared to the normal range of -1% to 1% previously.

Read the original article on Business Insider Australia. Copyright 2015. Follow Business Insider Australia on Twitter.
China
Advertisement
Close icon Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.

Jump to

  1. Main content
  2. Search
  3. Account