Primary Taiwanese news agency Central News Agency (CNA) recently reported that, according to a research report by Morgan Stanley, overseas institutions’ participation in Hong Kong stocks has dropped by one third since 2021. Overseas funds are gradually withdrawing from the Hong Kong stock market.
In the years 2016 to 2020, participation of overseas institutions in Hong Kong stocks accounted for 39.5 percent, 37 percent, 36.6 percent, 32.1 percent and 39.5 percent, respectively. In 2021, participation dropped sharply to 26.7 percent, and dropped to 23.1 percent last year and 24.6 percent today. Morgan Stanley’s research showed that overseas institutional funds continue to withdraw and continue to reduce allocations to Mainland China and Hong Kong stocks. Foreign investors are less interested in participating in Mainland Chinese and Hong Kong stock markets due to uncertainty in China-US relations, political instability across the Taiwan Strait, risks in the Mainland’s real estate market, and uncertainty about the pace of China’s economic recovery.
Source: CNA, September 12, 2023