KUALA LUMPUR, June 5 (Bernama) -- Bursa Malaysia closed higher, with the benchmark index rising 0.60 per cent as bargain-hunting persisted following the recent sell-off, despite weaker performances across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 10.17 points to 1,693.43 from Thursday's close of 1,683.26. The benchmark index opened 3.19 points higher at 1,686.45 and traded between 1,684.36 and 1,698.53 during the trading session. However, broader market sentiment remained negative, with losers outnumbering gainers 666 to 477. A total of 574 counters were unchanged, 958 untraded and 12 suspended. Turnover fell to 3.41 billion units worth RM3.04 billion from 3.47 billion units worth RM3.58 billion on Thursday.
China is set to halt the publication of daily data on overseas fund flows into and out of its stock market by mid-August, further obscuring information on foreign investments in its struggling equity markets.
Key Highlights:
End of Daily Data:
- Effective from August 18, China will stop publishing daily data on net flows of global funds into its stock market.
- This follows a previous move in May to end intraday flow data through trading links with Hong Kong.
Available Data:
- Post-August 18, stock exchanges will only provide data on total turnover, the number of trades, and the turnover of the 10 most active securities traded via Hong Kong links.
- Combined data on northbound flows into individual stocks will be available quarterly.
- Holdings of global investors in individual stocks will be released on the fifth trading day of each quarter, reflecting the close of the previous period.
Impact on Investors:
- Investors will lose the ability to calculate net flows at the end of each trading day.
- Real-time trading data for flows from mainland China to Hong Kong (southbound data) will remain available.
Market Context:
- The move comes amid efforts by Chinese policymakers to bolster confidence among local investors, who have been shaken by significant outflows of global funds.
- In July, overseas money managers offloaded approximately 30 billion yuan (RM19.17 billion) of mainland shares, marking the largest monthly outflow since October.
Alternative Data Sources:
- Despite the cessation of daily data, quarterly reports from the central bank on financial assets held by overseas entities will still provide some insight into fund flows into Chinese stocks.
- However, this data is subject to a lag of at least a month and can experience unexplained delays.
The decision to end the publication of daily global stock flows data reflects China's ongoing attempts to manage investor sentiment and address challenges in its stock market, even as it limits transparency for international investors.
Comments
Post a Comment