China's stock exchanges halt live foreign data, raising transparency concerns.

From XM: 2024-07-30 07:00:00

China’s stock exchanges are halting live data on foreign buying and selling in the stock market, starting from Aug. 19. This move worries traders as it may hinder transparency and obscure outflows. Daily figures will no longer be provided, with foreign shareholdings info released quarterly. Year-to-date inflows are at 10 billion yuan, down from 96 billion yuan in May.

The decision to stop providing daily data feeds is justified by the exchanges, citing Western counterparts do not provide the same information. However, this may lead to suspicions of manipulated data. Foreign investors dumped 11 billion yuan of shares last week, leaving year-to-date inflows to the Chinese market at less than 10 billion yuan. The delay in reporting may impact the accuracy of the information.

China’s benchmark CSI 300 Index is down 1% this year, but it is expected to rise again eventually. This move to stop publishing daily figures may hinder transparency and global investors’ ability to assess market trends. It may lead to doubts about the authenticity of the data and affect investment decisions. The impact of this decision on China’s stock market remains to be seen.



Read more at XM: Halting China stock flows data cuts both ways