A stock market rally early in the year is already losing steam as economic data fails to reassure investors. (Source photos by AP)

Chinese reopening rally stalls as foreign investors cut purchases

Recovery hopes wane after property sales, cargo shipments prove disappointing

KENJI KAWASE and ECHO WONG, Nikkei staff writers

February 20, 2023 06:00 JST

HONG KONG -- Foreign investors are scaling back their purchases of Chinese stocks as hopes for a reopening rally in the world's second-biggest economy give way to concerns about falling cargo shipments and lackluster sales of homes and cars.

After jumping 18.47% in the three months ending in January, the widely followed CSI 300 equities index has slipped 2.94% in February to 4034.51, with foreign purchases of Chinese stocks via the trading link between Hong Kong and the mainland slowing significantly.