In part of the increasing ebb and flow of foreign capital in the China market, Western investors pumped a record amount into Chinese equity exchange traded funds in June as the mainland stock market surged ahead of its major rivals, reports the Financial Times.
The flood of cash into the Shanghai and Shenzhen bourses came as the country’s draconian Covid lockdowns were eased and regulators telegraphed a less severe approach to policing China’s tech sector almost a year after kicking off an unprecedented crackdown.
Both US and European investors poured record sums into the Chinese market, with US-listed ETFs taking in a net $4 billion and those domiciled in the Europe, Middle East and Africa region sucking in $1.8 billion, according to data from BlackRock. The combined total of $5.8bn comfortably exceeds the previous record of $4.3 billion set in January. The European buying spree occurred even as EMEA investors pulled money from both US equity ($900 million) and European equity ($800 million) ETFs.