Investors sell off $49b Chinese shares

Foreign investors have sold off a record HK$49 billion worth of Chinese shares in the first three months this year.

The sell-off came amid the fears on the latest Covid outbreak in the mainland and Beijing's pro-Russian stance in the Ukraine conflict, which may bring about sanctions from Western countries, the Financial Times reported.

By Friday's close, net sales by offshore investors this year totalled almost 40 billion yuan (HK$49.2 billion), on track to mark the worst quarter since Hong Kong's stock connect scheme with mainland began in 2014 the report said. The sell-off marks a sharp contrast from 2021, when net inflows through the scheme topped 430 billion yuan, the report added.

This came as Chinese equities rallied later last week after Beijing vowed to keep markets stable, soothing overseas investors' nerves after a massive sell-off .

Staff reporter and Reuters