Following the U.S. President Donald Trump’s announcement of possibly reducing the tariff rate on China, many Chinese investors decided to sell their stocks in Hong Kong at a total amount of HK$18.1 billion, or about USD 2.33 billion, according to the exchange data.
Before this withdrawal, Chinese investors were purchasing the stocks to the point of hitting a daily record two weeks ago, when Trump crashed the global market by announcing a series of tariffs on April 2. These purchases were sufficient enough to support the market from falling further.
The selloff today, which is the largest outflow since the record was set in February 2021, could be a profit taking from investors that buy the dips since the market crash.
A strategist at Bloomberg Intelligence noted that with trade tension potentially easing, the need for putting assets in the Hong Kong market is less as the currency pegs to the U.S. dollar.
Despite the massive selloff from Chinese investors, the Hang Seng Index still settled 2.3% higher for the day.
