May sees increased foreign capital outflows from China

Foreign investors increased selling of Chinese shares in May due to weak domestic demand and anticipated poor corporate earnings. Refinitiv data reveals that they sold $1.71 billion worth of mainland shares via Stock Connect this month, following a $659 million sell-off in April. This signifies a reversal from their significant January investment of $20.92 billion when China reopened its economy after COVID-19 restrictions. Hopes for growth were dashed as both domestic and overseas demand weakened, with uneven recovery observed. China’s industrial firms also experienced a slump in profits during the first four months of the year, according to the National Bureau of Statistics.

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