• Chinese investors are so tired of losses in the country's stock market, they're flocking to Japanese ETFs.

• Japanese ETF's like the China AMC Nomura Nikkei 225 ETF have notched fresh highs.

• Meanwhile, Chinese markets tracked by the CSI 300 Index have shed 11% as the economy continues to flounder.

Chinese stocks have been caught in a downward spiral in the past year, with a long list of the country's economic woes dragging shares lower — and investors are tired of it.

Chinese investors have been pouring money into a band of hot Japanese ETFs, Bloomberg reported on Wednesday.

Trading in shares of the China AMC Nomura Nikkei 225 ETF soared to a record 373 million yuan ($52 million) on Wednesday, 10 times its average in 2023, per Bloomberg data. The AMC Nomura ETF also saw a spike in activity, and has jumped 6.3% since Friday, outpacing Nikkei 225's 3.2% rise.

Japan's Topix Index rose 25% last year to notch a 34-year high.

Meanwhile, China's CSI 300 Index has shed 11% in the last year as the economy has been buffeted by a crashing property sector, slowing consumer demand, and trade tensions with the US. The benchmark index is trading at a five-year low.

The country's economic headache has bogged down investor sentiment for the last year, with low confidence about a strong comeback any time soon. Foreign investors have also been fleeing, pulling 90% of the cash they pumped into the country's market last year.

The road ahead still looks difficult for the country's economy, and some experts believe the investor exodus won't recover in 2024.

Read the original article on Business Insider