(Bloomberg) -- Chinese investors sold a near-record amount of Hong Kong stocks on Wednesday, reducing holdings after hopes of easing in trade tension spurred a relief rally.

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They offloaded shares worth HK$18.1 billion ($2.3 billion) on a net basis, the biggest outflow since a record set in February 2021, according to Bloomberg-compiled data. Despite the selling pressure, the Hang Seng China Enterprises Index gained 2.1%.

The withdrawal is in sharp contrast to a flurry of buying by Chinese investors this year. Their purchases have put a floor under the market’s slide, with southbound buying hitting a daily record two weeks ago — when stocks were still reeling from US President Donald Trump’s April 2 tariff shock.

It’s “likely profit taking as southbound flows have been very strong in April even amid the trade tensions,” said Marvin Chen, strategist at Bloomberg Intelligence. “Also with trade tensions potentially easing, currency depreciation expectations may also be easing, so there is less need to shelter in Hong Kong assets.”

--With assistance from Mengchen Lu.

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