An electronic board shows Shanghai and Shenzhen stock indices at the Lujiazui financial district in Shanghai, China on Mar 17, 2023. HONG KONG : Global fund managers sold China equities sharply in October despite further steps from authorities aimed at boosting the world's second-largest economy, according to a report from Morgan Stanley that cited data from fund flow tracker EPFR.
"The outflows mostly due to regional funds' rebalancing out of China, in which European-domiciled funds led," Morgan Stanley analysts led by Gilbert Wong said. 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.
The MSCI China benchmark slumped 4.3 per cent last month, while the CSI 300 dropped 3.2 per cent. Stocks sold off include JD.com, Xiaomi and China Construction Bank. But bets were added to internet giants such as Alibaba and Baidu, as well as to insurance firm AIA.