Chinese Investors Dump $2 Billion Hong Kong Stocks in Rare Move

Chinese investors sold a near-record amount of Hong Kong stocks on Wednesday, reducing holdings after hopes of easing in trade tension spurred a relief rally.

They offloaded shares worth HK$18.1 billion ($2.3 billion) on a net basis, the biggest outflow since a record set in February 2021, according to Bloomberg-compiled data. Despite the selling pressure, the Hang Seng China Enterprises Index gained 2.1%.

The withdrawal is in sharp contrast to a flurry of buying by Chinese investors this year. Their purchases have put a floor under the market’s slide, with southbound buying hitting a daily record two weeks ago ...