Foreign investors sold a record $12bn worth of Chinese stocks in August as piecemeal support measures from Beijing failed to assuage concerns over slowing growth in the world’s second-largest economy and a worsening crisis in the country’s property sector.
The unprecedented outflows come as figures on Thursday showed China’s manufacturing sector contracted for a fifth consecutive month, despite pledges from leaders in late July to deliver more substantial support measures for the vital property sector, which is typically responsible for about a quarter of annual economic activity.
Simmering tensions with Washington have also dimmed western investors’ appetite for Chinese assets, with US commerce secretary Gina Raimondo warning that American companies were starting to see China as “uninvestable” during a four-day visit to the country this week.