Global Investors Ease Back Into China Equities on Rebound Bets

(Bloomberg) ― Global investors returned in earnest to China’s stock markets in May, erasing much of the year’s earlier outflows as investors bet that policy support and the emergence of key cities from Covid lockdowns will spark a revival.

They added 16.9 billion yuan ($2.5 billion) of Shanghai and Shenzhen shares via trading links this month, narrowing year-to-date outflows to just 1.2 billion yuan. Most of the sell-off was in March, when the war in Ukraine roiled markets and Shanghai entered lockdown.