Foreigners In Turned Selling Communist China Stocks in July Due to Concerns on CCP Virus

Overseas investors turned into net sellers of Communist China stocks in July, as mainland stocks price fell on fears of CCP virus (Covid-19) outbreak and ensuing lockdowns would further disrupt economic activity.

 Foreigners sold a net 21.07 billion Yuan ($3.12 billion) worth of mainland stocks in July through the Stock Connect, a key cross-border channel between the mainland and Hong Kong exchanges, according to Refinitiv data.

 In the Shanghai Stock Exchange, a net RMB 11.8 billion worth of shares was sold, and in the Shenzhen Stock Exchange RMB 9.27 billion.

 The data shows that foreigners have bought accumulated 95.45 billion Yuan of RMB in the past three months.

 Factory activity in Communist China unexpectedly contracted in July due to newly emerging cases of coronavirus, while its official manufacturing managers’ index is falling to 49 from 50.2 in June. Any reading below 50 is considered a contraction.

 In addition, homebuyers in Communist China are threatening to halt mortgage payments until developers resume construction of pre-sold homes, increasing concerns about the last month debt-ridden real estate sector and raising fears that banks could face huge write-downs.

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