Global funds dump China blue chips in $11bn selloff

Global investors have been shedding China’s blue-chip stocks during the longest stretch of outflows on record, showing even the nation’s industry leaders are falling out of favour as a rout deepens.
Foreign investors sold 6.2 billion yuan ($851 million) of Kweichow Moutai during August 7-18, making China’s largest liquor maker the most heavily sold stock through trading links with Hong Kong. It was followed by 4.7 billion yuan of selling each for leading renewables stock LONGi Green Energy Technology and , according to the latest data on individual stocks available on Bloomberg.
Overseas funds have been fleeing the mainland market, offloading the equivalent of $10.7 billion in a 13-day run of withdrawals through Wednesday, the longest since Bloomberg began tracking the data in 2016. Their departure comes as a prolonged housing slump raises the risk of broader financial contagion, making the nation’s equity benchmark among the worst global performers this month with nearly an 8% loss.
The CSI 300 Index is now trading at its lowest since November as optimism following the July Politburo meeting quickly evaporated.