China Stocks: Foreign funds flee China stocks in record selling streak

Foreign investors have sold over 1 billion yuan ($137 million) worth of equities listed in Shanghai and Shenzhen via the trading link as of the midday break Thursday, headed for a ninth-straight day of outflows. That would tie the longest stretch of net selling since just after Bloomberg began tracking the data in December 2016.
Foreign investors have sold more than 45 billion yuan of mainland China stocks over the latest nine days, nearly wiping out their recent buying spree amid hopes for new government measures after the key Politburo meeting. Lack of concrete policy action, weak economic data and fears of contagion from property-sector woes have sparked the renewed selloff in Chinese equities.

“Overseas investors are lowering their expectations for growth,” after recent data and amid “restrained” moves by the government to contain the property crisis, said Meng Lei, China strategist at UBS Securities.
Meng maintains an estimate for total foreign inflow of 300 billion yuan this year. However, forceful and timely moves to loosen restrictions on buying property and offer fiscal support may be needed to drive inflows, he added.