The erasure of US$3 trillion in market capitalization on China’s stock market may undermine efforts to internationalize the renminbi as investor concerns mount over the government’s intervention in the markets last week, The Financial Times reported. “Confidence in the local Chinese equity market has been shattered and is unlikely to come back any time soon,” said Julius Baer strategy analyst Heinz Ruttimann. “To stop trading is serious and for investors the most hated market intervention.” International investors have already pulled RMB40.5 billion (US$6.5 billion) in foreign funds out of the mainland market through the Hong Kong-Shanghai Stock Connect scheme since July 3.
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