Chart of the day: Foreign buyers keep faith in Chinese stocks
The recent woes in Chinese equities have not deterred overseas investors, who bought more than they sold through the Stock Connect programmes for a second day on Wednesday. Net purchases even reached a seven-week high of 3.47 billion yuan (US$525.5 million) a day earlier, with buying interest focused on Ping An Insurance (Group); Hangzhou Hikvision Digital Technology, which makes surveillance cameras; and organic light-emitting diode maker BOE Technology Group, according to data from Hong Kong Exchanges and Clearing. On November 23, foreign investors bought a net two billion yuan worth of Chinese shares when local traders rushed to offload their holdings, which fuelled a 2.3 per cent drop in the Shanghai Composite Index for its steepest decline this year. Concerns about excessive gains in blue chips and increased scrutiny of financial products have sent the Shanghai gauge down by 3.2 per cent from this year’s high in November.