Investors lose access to key data as China stops sharing daily flows data

Investors will no longer be able to get daily data about overseas fund flows in China’s stock market after the world’s second largest economy’s stock markets stop sharing daily flows data starting today, in what Bloomberg called its latest attempt “to obscure information about overseas funds going into and out of its sagging stock market.”

This comes at a crucial time for China, which is expected to see its first yearly outflow from its bourse since 2016 as overseas fund flows continue to exit the market, Bloomberg writes. The country’s benchmark CSI 300 is down 2.5% for 2024 and is at risk of extending losses into a record fourth consecutive year.

The rationale: Analysts think of the decision as a way for Chinese authorities to reduce market volatility driven by “high-frequency data,” in hopes of making investors more concerned with long-term indicators. “Beijing stopped the release because the data hasn’t been looking good, and it’s volatile,” capital markets company abrdn Asia’s director of investment Xin Yao Ng said, adding that “they probably don’t want the data to amplify capital outflows [but] it doesn’t solve the root of the problem.”

Remember: China saw net capital outflows including net FDI outflows over 2022-2023, the IMF said last month. “Some of this may reflect multinational firms repatriating earnings. But it may also reflect shifting expectations about Chinese growth and geoeconomic fragmentation,” the Fund said.

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MARKETS THIS MORNING-

Asian markets are mixed this morning after stock markets rallied last week following a global stock sell-off that triggered a market meltdown near the start of the month. The Kopsi is down 0.2% and the Nikkei is down 0.1%, while the Hang Seng is up 1.3%.

THE CLOSING BELL: TADAWUL-

The TASI rose 0.6% yesterday on turnover of SAR 5.9 bn. The index is up 0.1% YTD.

In the green: Saudi Re (+9.9%), Chubb (+9.8%) and Alsagr Ins. (+9.3%).

In the red: SFICO (-7.9%), Al Baha (-7.7%) and SAIB (-2.1%).

THE CLOSING BELL: NOMU-

The NomuC declined 0.2% yesterday on turnover of SAR 45.1 mn. The index is up 4.8% YTD.

In the green: Leaf (+21.1%), ASG (+11.5%) and Al Modawat (+7.0%).

In the red: Mobi Industry (-10.8%), Banan (-6.8%) and AICTEC (-5.6%)

CORPORATE ACTIONS-

#1- Almasane Alkobra Mining Company is set to distribute SAR 79.7 mn in dividends for 1H 2024, at SAR 0.9 per share, it said in a disclosure to Tadawul..

#2- Jadwa Investment will distribute SAR 13.2 mn in dividends for 1H 2024 at SAR 0.2 per unit to holders of Jadwa REIT Al Haramain Fund, it said in a disclosure to Tadawul..

#3- Mohammed Hadi Al Rasheed and Partners approved a SAR 24 mn dividend distribution at SAR 2 per share, according to a disclosure to Tadawul. The distribution date is set for Tuesday, 3 September.

#4- Intelligent Oud Company for Trading will boost its capital by 20% to SAR 19.5 mn via a bonus share issuance, it said in a disclosure to Tadawul. The SAR 3.3 mn capital increase will be funded from the outfit’s retained earnings with shareholders receiving one bonus share for every five shares held. The raised capital is earmarked for shoring up the company’s capital base and supporting expansion plans.

#5- Saudi Reins. has filed to hike its capital to SAR 1.2 bn by issuing 26.7 mn new shares to the PIF, upping the PIF’s stake in the company to 23.1%, it said in a disclosure to Tadawul.