August 19, 2024 at 11:39PM
China has stopped publishing daily data on foreign fund flows into its stock market
publishing of daily data on foreign fund flows into its stock market stopped on Monday
the move is seen as an attempt to prop up sentiment amid ongoing outflows, at at the very least an effort to reduce volatility from high-frequency data
Year-to-date foreign flows turned negative as of Friday, could be first annual outflow since 2016 if selling persists
Investors now limited to quarterly central bank reports on foreign-held assets
The background to this:
China’s benchmark CSI 300 is down over 9% from May peak despite state fund purchases
Economic data remains weak, geopolitical tensions loom ahead of US election
Follows earlier moves to limit intraday flow data and real-time mutual fund valuations
Only aggregate turnover and top 10 active securities data to be published daily
Southbound flows from China to Hong Kong will still be reported in real-time
China’s continued efforts to manage market sentiment by limiting potentially negative data points raises transparency concerns but aligns with Beijing’s broader strategy of controlling information flow in financial markets. An not just financial markets ….
This article was written by Eamonn Sheridan at www.forexlive.com.
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