Chinese stocks were down again on March 15, with the benchmark Shanghai Composite Index 4.95 percent lower, to close at 3063.97, a 20-month bottom. The Shenzhen Component Index was down 4.36 percent to 11,537.24 points. The ChiNext Index, China’s NASDAQ-style board, fell 2.55 percent to 2504.78.
Northbound capital – money from Hong Kong or foreign investors via QFII – has seen a sell-off of 16 billion yuan (US$2.5 billion) taking the total for March to 64.5 billion yuan.
Analyst ZHANG Qiyao from Industrial Securities said global inflation is getting worse as the Ukraine-Russia conflicts continue. The Federal Reserve of the US is likely to raise interest rates, and the market can expect more foreign capital to flee.
But he also said in a long run, China’s stable economy and the interest margin between China and the US provide more opportunities for foreign investors.
