Heavy withdrawal in China’s stock market
stock market ; Mass withdrawals from China’s stock markets and bonds have significantly reduced the influence of Chinese markets in global portfolios and accelerated isolation with the rest of the world. Foreign holdings in Chinese equities and debt fell by 1.37 trillion yuan ($188 billion), or 17 percent, from a peak in December 2021 to the end of last June, Bloomberg data showed. It has prepared the data using the latest data from the Central Bank. This does not include the $12 billion outflow seen in August.
Withdrawal of funds from global investors and slowdown in China’s economy are being seen simultaneously. A recent Bank of America survey said the property market crisis and prolonged Covid restrictions, plus ongoing friction with the West, have helped create an ‘avoid China’ theme among investors. Foreign fund participation in the Hong Kong stock market has fallen by more than a third since the end of 2020.
Zhikai Chen, head of Asia and global EM equities at BNP Paribas Asset Management, says foreign investors are selling the market due to exhaustion. Concerns are being seen regarding the property market and decline in consumer spending. Disappointment over these matters has led many foreign investors to reconsider their risk appetite. However, a significant change this time is that China’s weakness is not being seen as a threat to the rest of the world either. Especially regarding the emerging markets, there is no concern behind China. MSCI China Index is predicting a decline of 7 percent in 2023. This marks the third consecutive year of decline. Which is the longest decline in the last two decades. The broader MSCI Emerging Markets Index suggests growth of 3 percent this year. As investors chase returns in other markets like India and Latin America. China’s weightage among emerging markets has reduced from 30 percent to 27 percent in 2021. The strength in markets like the US and Taiwan is due to the boom in artificial intelligence. Whereas there was no rise in the shares of mainland China regarding this. On the other hand, the strategy of excluding China from the emerging market portfolio is gaining momentum.
Launches of non-China equity funds are set to reach a record annual peak in 2023. China poses a number of risks, according to Gaurav Patankar, chief investment officer at Mercedes-Benz, which manages $1.1 billion of assets in the US. Which includes things like LGFV, pressure on housing stock, demography, dependency ratio, regulatory instability, geopolitical isolation. On the other hand, there are many investment opportunities in various sectors in emerging markets. The strength in markets like the US and Taiwan is due to the boom in artificial intelligence. Whereas there was no rise in the shares of mainland China regarding this. On the other hand, the strategy of excluding China from the emerging market portfolio is gaining momentum. Launches of non-China equity funds are set to reach a record annual peak in 2023. China poses a number of risks, according to Gaurav Patankar, chief investment officer at Mercedes-Benz, which manages $1.1 billion of assets in the US. Which includes things like LGFV, pressure on housing stock, demography, dependency ratio, regulatory instability, geopolitical isolation. On the other hand, there are many investment opportunities in various sectors in emerging markets.
The strength in markets like the US and Taiwan is due to the boom in artificial intelligence. Whereas there was no rise in the shares of mainland China regarding this. On the other hand, the strategy of excluding China from the emerging market portfolio is gaining momentum. Launches of non-China equity funds are set to reach a record annual peak in 2023. China poses a number of risks, according to Gaurav Patankar, chief investment officer at Mercedes-Benz, which manages $1.1 billion of assets in the US. Which includes things like LGFV, pressure on housing stock, demography, dependency ratio, regulatory instability, geopolitical isolation. On the other hand, there are many investment opportunities in various sectors in emerging markets. Whereas there was no rise in the shares of mainland China regarding this. On the other hand, the strategy of excluding China from the emerging market portfolio is gaining momentum. Launches of non-China equity funds are set to reach a record annual peak in 2023. China poses a number of risks, according to Gaurav Patankar, chief investment officer at Mercedes-Benz, which manages $1.1 billion of assets in the US. Which includes things like LGFV, pressure on housing stock, demography, dependency ratio, regulatory instability, geopolitical isolation. On the other hand, there are many investment opportunities in various sectors in emerging markets.
Whereas there was no rise in the shares of mainland China regarding this. On the other hand, the strategy of excluding China from the emerging market portfolio is gaining momentum. Launches of non-China equity funds are set to reach a record annual peak in 2023. China poses a number of risks, according to Gaurav Patankar, chief investment officer at Mercedes-Benz, which manages $1.1 billion of assets in the US. Which includes things like LGFV, pressure on housing stock, demography, dependency ratio, regulatory instability, geopolitical isolation. On the other hand, there are many investment opportunities in various sectors in emerging markets. Gaurav, Chief Investment Officer, Mercedes-Benz
