Chinese mutual funds suffer biggest net outflow in 31 months

Market split on financial measures announced at National People's Congress

Movements on the Hong Kong Hang Seng Index remained small after China's National People's Congress opened on March 5. © Reuters

NORIYUKI DOI, TAKESHI KIHARA and HAYATE KOIKE, Nikkei staff writers

March 8, 2023 07:06 JST

SHANGHAI/HONG KONG/TOKYO -- Net cash outflows from Chinese-stock mutual funds have hit a two and a half year high as the market shifts from buying to profit-taking, with views divided on new measures announced at China's National People's Congress.

Some in the market voiced concerns over President Xi Jinping's efforts to further strengthen the government, while others view the bolstering of cutting-edge industries such as semiconductors as an opportunity.