China Stocks See Record Monthly Streak of Foreign Fund Exodus

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Foreign currency banknotes at the Birdy Exchange in Hong Kong, China, on Wednesday, June 16, 2022. Amateur investors have been coming to swap their bills for yen at Birdy Exchange, seeing a buying opportunity in the currency's fall to its weakest levels against the Hong Kong dollar since 2002.

Chinese stocks saw another month of foreign capital exodus as overseas funds offloaded 44.8 billion yuan ($6.1 billion) worth of mainland shares in October. The month saw only three days of inflows even as authorities ramped up support, with the sovereign fund buying banking stocks and exchange-traded funds.  

The three-month selling streak, a record, amounts to 172 billion yuan and threatens to turn this year's flow into negative territory. If that happens, it would be the first time China saw an annual outflow since the second mainland-Hong Kong trading link opened in late 2016.

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