Global funds dumped another $3 billion in China stocks in Oct -Morgan Stanley

The outflows (are) mostly due to regional funds’ rebalancing out of China, in which European-domiciled funds led,” Morgan Stanley analysts led by Gilbert Wong said.

According to Morgan Stanley, persistent outflows have resulted in foreign long-only managers being their most underweight on China since 2018.

The report said European funds have offloaded about half of their holdings accumulated since late 2020 and that there had also been an acceleration in outflows from U.S.-domiciled funds in October.

Investors remain cautious on China’s economic recovery, particularly after manufacturing activity unexpectedly contracted in October.

Source: Investing.com