Chinese Markets Experience Massive Capital Outflow Despite Efforts to Boost Confidence

Despite Beijing's efforts to boost investor confidence in Chinese markets, foreign investors continue to withdraw capital, with $1.1 billion of mainland Chinese equities being unloaded. The Chinese government has implemented measures such as reducing stock trade taxes and collateral requirements, as well as urging mutual funds to avoid selling equities. However, concerns over China's economic issues, regulatory crackdowns, and tensions with the US have led to a significant outflow of capital from the country. The number of active China-focused hedge funds has fallen, and direct investment liabilities have slumped to a record low. Chinese millionaires are also leaving the country in large numbers. Meanwhile, US Commerce Secretary Gina Raimondo visited Beijing to seek solutions on trade and investment issues, indicating a potential shift in US-China relations.