The market is worried about the Chinese Communist Party congress’s lack of supportive policies and a continued push for the Zero-COVID policy.

Foreign investors are withdrawing their capital en masse from the mainland for the first time.

According to Bloomberg, foreign investors sold a record net of 17.9 billion yuan, or $2.5 billion worth of mainland shares, on Monday, October 25. 

The big sell-off occurred right after the 20th National Congress of the Chinese Communist Party. After the nation’s essential twice-a-decade political event, the Hang Seng China Enterprises Index fell to its lowest level since the financial crisis of 2008. The public expects that Chinese leader Xi Jinping’s unprecedented re-election will continue the strict Zero-COVID policy.

Marvin Chen, a Bloomberg analyst, said that foreigners now don’t find Chinese stocks attractive investments. The markets may need to wait closer to the Central Economic Work Conference in December to see how the new leadership will deal with China’s economic challenges.

Skepticism covers the nation’s economic growth from the Zero-Covid policy and the real estate crisis.

Even though the GDP for the third quarter was better than expected, the key CSI 300 Index fell 2.9% on Monday.

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