Investors Withdraw Funds From China Stocks

Investors withdraw funds from China stocks

Worries over China’s continuing economic slowdown have led to investors withdrawing funds from Chinese assets. Fund managers have withdrawn money from Chinese stocks in 16 of the previous 18 weeks. This included a net outflow of US$ 834 million in the five-day period ending on 5 June this year, the most substantial outflow since January 2008. At the same time, on the currency markets investors are raising their bets that the RMB will fall, and consequently the benchmark Shanghai Composite has fallen 12.1% this year, according to Chinese run state media.

This has put pressure on the financial system here in China and there is a fear here that capital is also flowing out of China as well. I believe the reaction to this will be a opening of the financial markets here in hopes that the capital increase can raise the markets back up, but the big question now is if you build it will they come?

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

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