Global Hedge Fund Managers Seen Offloading Chinese Equities

Goldman Sachs said stocks in China and other Asian markets emerged among the areas global hedge funds sold in November as fund managers reduced their exposure to the world's second-largest economy. Chinese stocks saw net outflows by long/short portfolio managers for the fourth consecutive month, driven by declines in retail stocks. Goldman Sachs and the Prime Services group said in a report on Dec 4 without disclosing numbers.

This year marks the ninth consecutive month of net outflows, prompting Asia to emerge as the region with the largest net outflows globally, the bank said. In contrast to the general group of major world indices on the positive outlook for reducing US interest rates. US, China and the CSI 300 index fell 2% in November, and the Hong Kong and Hang Seng indices fell 0.4%, both ranking fourth. place. The moon sets.

Although relations between the United States and China showed signs of warming after the meeting between US President Joe Biden and Chinese President Xi Jinping last month, investors remain cautious amid Chinese economic indicators and the crisis in course in the country sector.

Goldman Sachs said U.S.-listed Chinese stocks and domestic A-shares led November's sell-off, adding that net sales of H-shares partially offset this.

Among Asian emerging markets, Taiwan also posted net outflows last month, while South Korea posted the largest outflows, according to Goldman Sachs. Hedge funds posted net sales this month as they shifted positions to develop Asian markets such as Hong Kong, Singapore, and Japan.

On a positive note, inflows from foreign countries, including trade and corporate funds, through northbound trade links from mainland China's A-shares, slowed in November.