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Overseas investors have resumed selling China onshore equities in the new year as pessimism over the country’s sluggish economic recovery deepens.

Global funds offloaded 7.9 billion yuan ($1.1 billion) of stocks in the first two weeks of 2024, after making large purchases in the final week of last year, according to Bloomberg-compiled data. Sentiment remained downbeat as deflationary pressures persist, while policy support has been underwhelming.

Chinese equities saw their worst start to a year since 2019 and are trading near their lowest level in nearly five years. The selling came after foreigners recorded their smallest-ever annual purchases of onshore stocks in 2023, putting January on track for a sixth straight month of outflows.

Written by: Bloomberg News — With assistance from John Liu and Lin Zhu @Bloomberg

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