Foreign investors have been piling into Chinese stocks at a record pace, just as the world’s best-performing market shows warning signs of a reversal of fortunes.
China equity funds took in more than $4bn from overseas over the past week, according to data from EPFR released on Friday, more than double the previous high set in the second quarter of 2008. At that time, Chinese stocks were in the middle of long and painful downturn after the popping of the 2007 stock market bubble.
China allocations within pan-Asian and global emerging market funds have also risen to a record high, EPFR data shows.
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