But the index is still down nearly 10% this year, one of the worst performers in the world. It staged a mild rebound on Tuesday and Wednesday, following news that China’s legislature had approved one trillion yuan ($137 billion) in sovereign bonds and the sovereign wealth fund had bought funds to boost sagging shares.

On Monday, the CSI 300 Index, which tracks the top 300 stocks on the Shanghai and Shenzhen stock exchanges, slumped to its lowest level since February 2019. The cumulative outflow via Stock Connect, a trading link set up in 2014 giving international investors access to shares in mainland China via Hong Kong, hit $22.1 billion between August 7 and October 19, the largest outflow in the platform’s history. A-shares are yuan-denominated shares of mainland China firms that trade on the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

Investors have been dumping Chinese stocks at an unprecedented pace, exiting the world’s second largest economy despite efforts by Beijing to juice growth by borrowing more to fund extra spending.įoreign fund outflows from China’s so-called A-share market have entered “an unprecedented stage,” Morgan Stanley strategists wrote in a recent note.