BEIJING: Overseas investors have started loading up on Chinese stocks again following the rout last month that pushed the benchmark index to the lowest in nine months.
Foreigners bought a net $19.7 billion yuan ($3.1 billion) over the past four trading sessions via trading links with Shanghai and Shenzhen, according to Bloomberg data. If they continue buying up shares via trading links on Tuesday, that will be the longest streak since the end of April.
The buying opportunity comes after a volatile week for shares in the world’s second-largest equity market, when a ban on profit making for swathes of the tutoring industry sparked broad concern that multiple industries could be targeted by Beijing.
China’s CSI 300 Index fell by 6.6% over Monday and Tuesday last week as investors scrambled to price in growing risks. While there were gains the next two days, losses for the week were the most since late February.
On Monday, Chinese equities jumped 2.6%, the most in 10 weeks, as traders turned buyers of everything from baijiu liquor producers to construction firms on expectations of increased support for the economy. - Bloomberg