US Investors Dump Chinese Equity ETFs With $3.4 Billion Outflows

US-listed China equity ETFs recorded a combined $3.4 billion of outflows across May, June, and July. The funds included the China Large-Cap ETF ($FXI), MSCI China ETF ($MCHI), CSI 300 China ETF ($ASHR), China Internet ETF ($KWEB), China Technology ETF ($CQQQ), and China Technology and Semiconductor ETF ($KSTR).

The 12-month cumulative outflow fell to -$1.0 billion through July, the largest withdrawal in at least a year. Year-to-date, the largest outflow has come from $FXI at -$1.6 billion.

Other notable year-to-date outflows include $MCHI at -$868 million and $KWEB at -$833 million, pointing to weak investor demand for Chinese equities.