(Bloomberg) -- Foreign investors are dipping their toes back into onshore Chinese stocks after a record bout of selling, a sign that the battered market may be forming a bottom. Overseas funds added a total of 15 billion yuan ($2.1 billion) over three sessions, the longest run of net purchases since early August. The CSI 300 benchmark has gained 4.6% from last month’s low.

While the figures may seem underwhelming when compared to an outflow of 172 billion yuan in the three months through October, an extension of the net buying trend may embolden those who expect a market turnaround. Pessimism has been extreme, with global long-only funds the most underweight mainland China and Hong Kong stocks since 2018, according to an analysis by Morgan Stanley. 

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