The Chinese Communist Party has decided to limit access to important domestic investment data, which caused concern among international investors. This decision was made at a time when global funds continue to withdraw capital from the country's stock market, which can make 2024 the first year of significant outflow of capital from China.
On Monday, daily data on net investment flows from foreign funds in the stock of mainland China have become unavailable. From now on, foreign stock assets will only be provided quarterly, which significantly complicates the analysis and monitoring of investment dynamics for international analysts and investors.
These restrictions have emerged during a period when Beijing tries to strengthen the domestic market against the background of anxiety about slowing down the economy and crisis in the real estate sector, which has been affecting the country's economic stability for a long time. Increasing distrust of the Chinese market is supported by these new measures, which can lead to further outflow of capital.
This is not the first step of Chinese regulators to restrict access to financial data. In May 2023, the Chinese authorities had already stopped access to trade data on foreign investors in real time. Such actions can further undermine the confidence of investors and promote further outflow of capital from the country.
