Global passive funds are putting added strain on the world’s worst performing stock market as they join actively-managed peers in the January selloff of Chinese and Hong Kong equities.
Managers of benchmark-tracking funds have sold $300 million net of shares traded in mainland China and Hong Kong so far this month, according to a Morgan Stanley analysis. That’s a reversal from the last half of 2023 when they were the rare net buyers, recording $700 million of inflows.