Having surged to over a 30% gain this year, far ahead of Europe and US markets, Chinese stocks have dramatically weakened back to EU,US stocks in the last few weeks.

China's initial weakness was likely triggered by local officials comments on exuberance and actions to rein in some of the margin surge that always seems to occur when the Chinese investing population discover a trend.

However, as the trend broke, another set of investors has decided to exit the burning building - foreigners!

“Offshore investors chose to lock in profits given the great uncertainty in Sino-U.S. relations,” said Li Bin, a Shanghai-based fund manager at Capital Corise Asset Management Co. “The bigger declines on the SSE 50 index might be a result of consistent foreign outflows.” The SSE 50 has fallen 8.4% this week, while the Shanghai Composite Index is down 7.4%.

Foreign investors net sold an average 4.4 billion yuan ($646 million) of mainland shares a day through trading links with Hong Kong this week, according to data compiled by Bloomberg.

They are on track for the heaviest week of selling since the Shenzhen connect opened in late 2016...

The exodus extends a trend from April, which saw net sales of 18 billion yuan, a monthly record...

Of course, this could all change by this time tomorrow as Liu arrives in DC and US tariffs hit (and possible China retaliatory tariffs).