Chinese investors load up on stocks for the longest stretch since April

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Chinese investors load up on stocks for the longest stretch since April

- Chinese investors have loaded up on Chinese stocks by the longest stretch since late April, following a loop last week that shoved the country's benchmark index to its lowest in almost nine months.

The foreigners bought a net 21.5 billion yuan over the last five trading sessions via trade links with Shanghai and Shenzhen, according to Bloomberg data compiled. If people continue to buy on Wednesday, that will be the longest stretch since March.

The buying followed a volatile week for shares in the world's second largest stock market when a ban on profit making for large areas of the tutoring industry sparked broad concern that multiple industries could be targeted by Beijing. China's CSI 300 Index fell a combined 6.6% on 26 July and 27 as investors scrambled to price in growing risks. While there were gains the next two days, the week dropped was still the most in five months.

On Tuesday, Chinese equities were little changed even as Hong Kong's Hang Seng Tech Index declined on fears about further clampdowns. Institutional investors remain optimistic on the long-term healthy trend of the A-share market, with corrections an opportunity to buy quality assets, according to a report by the Shanghai Securities News on Tuesday.