Foreigners sell China stocks in 2024 as economic woes worsen

Overseas investors have resumed selling China onshore equities in the new year as pessimism over the country’s sluggish economic recovery deepens.

Global funds offloaded 7.9 billion yuan ($1.1 billion) of stocks in the first two weeks of 2024, after making large purchases in the final week of last year, according to Bloomberg-compiled data. Sentiment remained downbeat as deflationary pressures persist, while policy support has been underwhelming.

Chinese equities saw their worst start to a year since 2019 and are trading near their lowest level in nearly five years. The selling came after foreigners recorded their smallest-ever annual purchases of onshore stocks in 2023, putting January on track for a sixth straight month of outflows.