Foreign investors are turning away from China due to geopolitical tensions and regulatory uncertainties.

From Google: 2024-09-13 13:00:18

Foreign investors are turning their backs on China amid growing geopolitical tensions. The country ranked at the bottom of fund managers’ preferred markets for the first time in 16 years. This shift is driven by concerns over Beijing’s regulatory crackdowns, technology sector policies, and trade tensions with the US.

China has fallen out of favor with global investors as the country’s stock market faces dwindling foreign inflows. The drop in foreign investment highlights a broader trend of fading interest in Chinese assets, with the US-China trade war and rising regulatory scrutiny dampening investor enthusiasm.

Despite China’s efforts to attract foreign investors, they appear to be increasingly wary of the country’s economic and political risks. This has led to a significant decline in foreign investment flows into Chinese markets, with investors turning to other more stable and predictable investment opportunities.

The shift in investment sentiment towards China reflects a broader reevaluation of geopolitical risks and regulatory uncertainties. Foreign investors are increasingly cautious about putting their money into the Chinese market, opting for safer and more stable investments elsewhere. This trend could have significant implications for China’s economic future and its attractiveness to global investors.



Read more at Google: China out in the cold for foreign investors – Financial Times