Chinese stocks erase 4 1/2 years of gains as foreign investors flee at record pace

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Joseph Adinolfi is a markets reporter at MarketWatch.

As of Monday, Chinese stocks have now erased all of their gains from the past 4½ years, the latest dismal milestone during what has been a difficult year for the world’s second-largest economy.

The yuan USDCNY, -0.04% traded at 7.3 to the U.S. dollar on Monday, and since the start of the year, the greenback has appreciated more than 6% against its Chinese rival. Data analyzed by a team of macro strategists at MUFG Bank showed foreign investors have sold $3.1 billion in Chinese stocks on a net basis through Oct. 17, following $5.1 billion in outflows in September, and more than $10 billion in August.

 

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