SINGAPORE -- Investors are withdrawing funds from Chinese stocks due to growing concern about the prospects for the world's second-largest economy. If risk aversion spreads among global investors in the wake of a market downturn in China, it could lead to a softening of equity markets around the world.
A total of around $3.7 billion was pulled out of Chinese stocks in the first 14 days of August, according to data released daily by the Institute of International Finance. This was the second-largest exodus of capital from the country, behind the net withdrawal of $7.9 billion in October 2022, when China's economy was stuck in the doldrums under its zero-COVID policy.
