$1.71 Billion Foreign Capital Withdrawn, Over 1100 Companies Cash in by Reducing Holdings in China

A lackluster recovery in China's economy is prompting investors to change their strategies. Not only are foreign investors pulling out more money from China's stock market, flocking to other major Asian markets instead, but shareholders of Chinese listed companies are also cashing in by reducing their holdings. Moreover, China's A-share market is witnessing its largest delisting wave in history. Multiple indicators suggest that the Chinese stock market has entered a bear market.
On June 6, China's main A-share index fell sharply again following a decline the previous day. The Shanghai Composite Index fell by 1.15%, dropping below the 3200 point mark, hitting its lowest level since January 13. 90% of stocks declined that day, with industries like electronics, semiconductors, power, military, and sensors suffering the most, led by a drop in Apple concept stocks. Luxshare Precision, a key Apple concept stock, fell by 7.34%, GoerTek Inc. by 6.85%, and Shenzhen Everwin Precision Technology by a staggering 18.92%. Meanwhile, foreign capital continued to withdraw; on June 6, foreign investors sold off 1.08 billion yuan (approximately 151 million USD) via the Shanghai-Hong Kong Stock Connect, a key cross-border channel between mainland China and Hong Kong stock exchanges.
#chinamarket #chinastocks #chinaeconomy #chinaobserver
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[justsomeguyinnc]

Don't be a sucker. Don't be a bag-holder. Sell your chinese holdings while there is still a little value left in them. Sell that property before it literally collapses. Because even if your building doesn't collapse, it very well may be taken out by a neighboring falling tofu-dreg.

[HKim]

Stock market is a side show. Bond market is the bigger issue. CCP is in a pickle. They have to keep rates low to stimulate the economy, but who wants crappy CCP bonds when they are yielding at least 100bps less than US. So that only leaves domestic buyers for their bonds.
Home sales are a disaster and now they are starting price deflation.
Here is some random data:
- China's govt bond yield falls, treasury futures jump on hopes of more monetary easing.
China's 10-year govt #bond yield fell to 2.68%, a new low since Nov 11, 2022.
- Second-hand #home transactions in China's capital #Beijing slid 37.3% m/m in May, down 41.8% from March
- Prices in #China’s oil, coal, metal industries declined at faster pace in May - NBS

[advancetotabletop]

Alienate foreign investors — and regional neighbors. What could possibly go wrong?

[Zebadee]

Just when I think the CCP couldn't possibly stuff things up any more, they reply with "challenge accepted."

[douglasmackallor]

Bear Market? Sounds like a Winnie the Pooh Market, with the honey scrapped out of the pot.

[casualsuede]

Not surprised, no transparency in china

[larryadolf]

Every financial goal requires patience, dedication and consistent spirit knowing that investment is currently the most lucrative business in the world, BTC is positively changing people's lives. I stopped panicking about my BTC the very moment I started working with Mr K last year, his confidence and skills is on a maximum level..

[nerfherder]

Yo! 4000 lb gorilla in the room: Making provocative threats against a neighbor is bad for business. This is the issue that is never mentioned in these videos.

[my_pronoun_is_your_excellency]

Not to worry, Chairman Xi said at the beginning of the year that he would be personally in charge of economic development in China. Given his records, there is no uncertainty anymore, the PRoC economy is going to be reshaped, reformed, rebuilt according to his knowledge, his ambition and his historical mission! 🤣🤣🤣

[billm.]

This along with massive layoffs. Thousands of housing units empty that can’t be filled. China as a country will soon be broke. Inflation will skyrocket. Not a pleasant future to look forward to.

[musicjustforyoulnocopyrigh]

Pull all your money out from there before it's too late.

[idanceforpennies]

The stupid CCP has only one lever: Crackdowns. It's like a car that only has a brake pedal and no accelerator.

[ashleycampbell]

This confirms what I have been thinking. Talk of the China economy recovery was BS for ulterior purposes. Consider the increased Geopolitical risk to invest in China and CCP policies.
China is being decoupled as the World's factory. They are also being economically and militarily hamstrung with the semiconductor chip embargo.
Writing is on the wall for an economic collapse/correction due to reduced export orders. More interesting times ahead in 2023 and 2024.

[Fr.VeniceLAI]

Indeed, checking the 3-China Markets Indices, HongKong, Shanghai SSE and Shenzhen Comp. all reached their Year's highs on January 27, 2023. Comparing with last week's Friday closing i.e. June 9, 2023 versus Friday, January 27, 2023., respectively, HongKong Index lost -ve 14.54%, Shanghai SSE Index lost -1.02% and Shenzhen Comp. index lost -ve 9.91%.

[arfajob]

4:35 Looking at how alluvial and large the capital movement has been between January and April, I would guess the markets are in the hands of day traders and speculators rather than investors.

[Rachelschneider]

A lot of folks have been going on about a june rally and said stocks that would be experiencing significant growth these summer season, any idea which stocks this may be? I just sold my home in the robbinsville area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?

[jaypetz]

Seems like they are reverting back to where they started. The prosperity they accumulated for decades gone in 5 years

[QuanTran-xbzx]

West Taiwan should look to Taiwan leaders on how to run a well respected country.

[icosthop]

Hundreds of Millions of Chinese citizens out of work ?❔️

[jeremypearson]

EU countries not doing great, but BRIC is really suffering. If they continue to pull away from the West and other countries, they’ll end up being too reliant on each other. There’s already rumblings that S Africa may lose a lot of exports due to their relationship with Putin.