(Bloomberg) -- Some of the most die-hard bulls on Hong Kong shares are deserting as losses intensify.
Chinese investors net sold 869 million yuan ($139 million) of Hong Kong equities via the exchange links with Shanghai and Shenzhen on Wednesday, according to Bloomberg calculations based on daily quota usage. That's the first net selling by mainland investors since late December and the biggest in any single day since August.
Mainland investors poured a net $2.9 billion into Hong Kong stocks in the first two days of the week, taking net inflows this year to $18 billion. The benchmark Hang Seng Index and the Hang Seng China Enterprises Index still both dropped more than 6 percent over Monday and Tuesday. Their gains on Wednesday morning then also evaporated, as the H-share measure swung the most since November 2016, when Donald Trump was elected as U.S. president.
Chinese buying of Hong Kong stocks could slow considerably and is unlikely to prevent a correction in coming months, Bank of America Corp. strategists including David Cui wrote in a note dated Tuesday.
--With assistance from Sofia Horta e Costa
To contact Bloomberg News staff for this story: Amanda Wang in Shanghai at twang234@bloomberg.net.
To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net, Will Davies, Philip Glamann
©2018 Bloomberg L.P.
With assistance from Amanda Wang
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