Global Funds Slash China Stock Positions to Lowest Since October

(Bloomberg) — A record sell-off in Chinese stocks by global funds has pushed their positioning to the lowest since October, with money managers unswayed by the stimulus measures that have been coming through over the past few weeks.

The average underweight position by global long-only managers is back to where it was before the pandemic reopening rally took off in late 2022, according to a Morgan Stanley quant analysis. Foreign funds sold about 90 billion yuan ($12 billion) of mainland shares in August via the trading links with Hong Kong, the most in data compiled by Bloomberg going back to 2016.