Global Hedge Funds Dump Chinese Stocks

China and the broader emerging Asia market stocks were among the most net-sold regions by global hedge funds in November, as reported by Summer Zhen for Reuters, citing information from Goldman Sachs.

Investors remain cautious amid sluggish Chinese economic data and a persistent crisis in the property sector.

Fund managers continued to reduce exposure to the world's second-largest economy.

Chinese equities experienced a net outflow from long/short fund managers for the fourth successive month, primarily due to a reduction in long bets, according to Goldman Sachs' prime services team in a report on Monday. The exact figure was not disclosed.

This marked the ninth month of net outflows this year, dragging emerging Asia to become the region with the largest net outflows globally.

In contrast to a broad rally in major global indices on optimism about a US rate cut, China's CSI 300 Index declined by 2%, while Hong Kong's Hang Seng Index fell by 0.4% in November, both posting their fourth-straight losing month.

Investors remain cautious amid sluggish Chinese economic data and a persistent crisis in the property sector, even as US-China relations showed signs of warming up after the meeting between US President Joe Biden and Chinese President Xi Jinping last month.

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