Foreign investors sold a record 17.9 billion yuan ($2.5 billion). Mainland China Stocks through trade connections with Hong Kong on Monday, with year-to-date investment levels turning into a small net outflow.
If the trend continues through the end of the year, it would be the first annual decline since the Stock Connect program started in 2014. reported Bloomberg.
What happened: Shares of US-listed Chinese companies suffered a setback alibaba group holding ltd BABA Closing about 12% lower on Monday and Tencent Holdings TCEHY ended the session down over 14%.
Pinduoduo Inc.‘s PDD Stocks plunged over 24% while shares of JD.Com Inc. JD closed over 13% lower.
Shares of Chinese electric vehicle manufacturers also suffered a slump Nio Inc. NEVER Close over 15% down and Xpeng Inc.‘s XPEV Stock lost over 11%.
See also: Investing for beginners
The stock market slump followed the Chinese president Xi Jinpings Consolidation of power as expectations mounted for the continuation of key policies such as Covid Zero.
Xi, who has won an historic third five-year term, has named his key allies for the politburo Standing Committee – China’s most powerful political body. According to the report, investors will now eagerly await two economic meetings scheduled later this year — the Politburo Meeting and the Central Economic Labor Conference.
GDP: The benchmark CSI 300 index fell 2.9% on Monday even as China registered better-than-expected third-quarter gross domestic product data. On Tuesday morning, the index was trading marginally higher.
China’s GDP grew 3.9% year-on-year from July to September.
“As the COVID situation remains highly unpredictable, we keep our 2022 GDP forecast at 3.0% despite the upside risk. Local health authorities stuck to their zero-COVID approach after the party conference. The number of medium- and high-risk areas has risen sharply in recent weeks. The outlook for consumption remains bleak,” ANZ research said in a note.
Continue reading: …
