Analysis: How to Keep Foreign Capital Flowing Into Chinese Stocks

Net overseas investment in the market via the Stock Connect reached $11.7 billion in the first five months of this year, nearly double last year’s total

In the wake of the flood of foreign capital that poured into the Chinese mainland stock market earlier this year, analysts have started to wonder what it will take to keep investor confidence stoked.

Net overseas investment in the market via the Stock Connect program — which allows offshore investors to trade mainland stocks through Hong Kong’s stock exchange and vice versa — reached 83 billion yuan ($11.7 billion) in the first five months of this year, according to Caixin calculations based on exchange data. The figure is nearly double last year’s total, although it pales in comparison with that of 2021.

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