Hedge Funds Flee Chinese Stocks Amid Dim Growth Outlook

Hedge funds aggressively sold Chinese stocks in August due to concerns over the country's property sector and weak economic data, with A-shares leading the sell-off. This marked the largest net selling in Chinese equities over a 10-day period since October 2022. The New York-listed KraneShares CSI China Internet ETF, which provides exposure to China's largest internet companies, experienced its biggest monthly decline since February. Global investors have raised concerns about China's economy, and a number of U.S.-based hedge funds have reduced their positions in Chinese stocks.