Global hedge funds continued to reduce exposure to China and broader emerging Asia market stocks in November, marking the fourth consecutive month of net outflows from Chinese equities, according to a report by Goldman Sachs.

The reduction in long bets contributed to this trend, with November being the ninth month of net outflows in 2023, making emerging Asia the region with the largest net outflows globally.

Despite a global rally driven by U.S. rate cut optimism, China’s CSI 300 Index declined 2%, and Hong Kong’s Hang Seng Index fell 0.4% in November, both posting their fourth-straight losing month.

Last month, U.S.-listed Chinese stocks and mainland A-shares experienced a significant selloff although this was partially offset by net buying in H-shares.

Among emerging Asia markets, Taiwan recorded net outflows, while South Korea saw the largest net inflows. Hedge funds shifted their positions to developed Asia markets, with Hong Kong, Singapore, and Japan experiencing net purchases during the month.

On a positive note, foreign capital outflows from mainland China A-shares were slower in November compared to October and September.