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Beijing crackdown spurs $2.6 billion Chinese equity outflow this week-IIF - Metro US

Beijing crackdown spurs $2.6 billion Chinese equity outflow this week-IIF

An investor looks at his mobile phone in front of a board showing stock information at a brokerage office in Beijing

LONDON (Reuters) – China’s equity markets suffered outflows of $600 million on Tuesday after bleeding $2 billion on Monday, the Institute of International Finance (IIF) said.

“These are very weak figures compared to the first half of 2021, when monthly inflows averaged $5.8 billion,” said Jonathan Fortun Vargas, economist at the IIF. “This is likely due to Beijing’s regulatory actions in the past week.”

Hong Kong’s benchmark index and Chinese A-shares had extended sharp losses to end at multi-month closing lows on Tuesday, as investors worried over the impact of tighter government regulations following a crackdown by Beijing on the tech and education sectors.

Graphic: IIF China flows: https://fingfx.thomsonreuters.com/gfx/mkt/egpbknoowvq/IIF%20China%20flows.PNG

(Reporting by Karin Strohecker, editing by Sujata Rao)

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