BEIJING authorities have restricted a key source of data on inward investment as global funds continue to pull money out of the country's stock market, threatening to make 2024 the first year of equity outflows, reports London's Financial Times.
Daily data shows net investment flows from foreign funds into stocks in mainland China - so-called 'northbound' trades from Hong Kong via the Stock Connect trading link - was no longer available. Information on foreign stock holdings will instead be available quarterly.
The move comes as international investors have pulled more than US$12 billion out of mainland Chinese equities since the start of June, according to Hong Kong stock exchange data, reversing earlier inflows that many analysts said were driven by the offshore arms of state-backed institutions, and taking year-to-date net flows into the red.
There has never been a full year of net outflows since Stock Connect - which allows foreign investors access to China's stock market - launched in 2014.
'While the data provided by global exchanges often vary, the lower transparency will not help attract foreign investment, especially in an emerging market,' said Gary Ng, senior economist at Natixis. 'Investors may wonder why it is no longer offered and find it more challenging to justify entry into China and make investment decisions.'
SeaNews Turkey
Daily data shows net investment flows from foreign funds into stocks in mainland China - so-called 'northbound' trades from Hong Kong via the Stock Connect trading link - was no longer available. Information on foreign stock holdings will instead be available quarterly.
The move comes as international investors have pulled more than US$12 billion out of mainland Chinese equities since the start of June, according to Hong Kong stock exchange data, reversing earlier inflows that many analysts said were driven by the offshore arms of state-backed institutions, and taking year-to-date net flows into the red.
There has never been a full year of net outflows since Stock Connect - which allows foreign investors access to China's stock market - launched in 2014.
'While the data provided by global exchanges often vary, the lower transparency will not help attract foreign investment, especially in an emerging market,' said Gary Ng, senior economist at Natixis. 'Investors may wonder why it is no longer offered and find it more challenging to justify entry into China and make investment decisions.'
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