China’s market crash could be the last straw for many foreign investors who leave permanently, think tank says

Chinese President Xi Jinping has his hands full trying to stop foreign investors from fleeing.REUTERS/Marko Djurica

  • China’s crashing stock market could be the breaking point for foreign investors, Atlantic Council’s Jeremy Mark said.

  • The market will become more volatile as remaining investors focus on fast profits.

  • The country needs to respond to its property crisis to trigger a stable market recovery.

The decline of China’s stock market may have scarred it for the long-term, as foreign investors likely aren’t coming back, the Atlantic Council wrote on Friday.

On domestic and US indexes, Chinese firms have collectively suffered a $7 trillion hit since early 2021. The fallout could be the final breaking point for offshore traders, who are already hastening to exit amid souring outlooks on the country’s economy, Senior Fellow Jeremy Mark said.

With few reasons to jump back in, China will…

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