In the past four months, international investors have pulled over €22.3 billion from Chinese mainland exchanges, constituting a staggering 75% reduction in capital investments flowing into Shanghai and Shenzhen stocks since the beginning of the year. This sharp decline, revealed through Handelsblatt's analysis of Hong Kong's Stock-Connect system data, places the current investment at its lowest point since 2015.
Why though? Doesnt make sense when at the same time Xi is getting standing ovations from corporate suits in the US. I get the debt issue but that applies everywhere. So, what is causing this trend?
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Good question. Maybe it's the real estate/banking bubble. Or the political climate. Or simple reallocations to other regions. A lag of confidence in the digital Yuan? I think that the US is attrackting a lot of capital in an unsecure geopolitical situation.
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