China’s Efforts to Bolster Stock Markets Fall Flat With Offshore Investors

Almost two weeks after the Chinese government released a series of measures to encourage stock trading, the reaction from overseas investors has been less than enthusiastic, with offshore funds continuing to flee the market following record selling in August.

Six of the eight trading days following the Aug. 27 announcement experienced net selling via the stock connect programs that link the Hong Kong stock exchange with the Shanghai and Shenzhen markets, according to data compiled by iFinD, a Chinese financial information provider.