Net cash outflows from Chinese-stock mutual funds have hit a two and a half year high as the market shifts from buying to profit-taking, with views divided on new measures announced at China’s National People’s Congress, reports Nikkei Asia. Some in the market voiced concerns over leader Xi Jinping’s efforts to further strengthen the government, while others view the bolstering of cutting-edge industries such as semiconductors as an opportunity.
Outflows from Chinese-stock mutual funds on a four-week average hit $970 million in the week of March 1, the highest total since August 2020, according to US market research firm EPFR.
Buying of Chinese stocks expanded after the beginning of the year, mainly among short-term investors such as Asian hedge funds, due to expectations that the economy would get back to normal faster than expected following the easing of the country’s strict zero-COVID policies.