Global hedge funds have been "aggressively" selling Chinese stocks in the backdrop of heightened concerns over China's property sector as well as a weak batch of eocnomic data, a Goldman Sachs report highlighted.

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All types of stocks were sold. However, A-shares, the ones that are listed in the domestic stock market, were the ones to lead the sell-off, as they comprised 60 percent of it, the bank said on Tuesday.

This is the largest net selling in Chinese equities over any 10-day period since October 2022 and one the highest moves in the past five years.

Goldman Sachs, as one of the biggest providers of lending and trading services through its prime brokerage unit to investors, is able to track hedge funds' investment trends.

Global investors have raised concerns about China's economy as a confluence of recent events has darkened its economic outlook.

On Tuesday, a broad array of Chinese economic data highlighted intensifying pressure on the economy from multiple fronts, prompting Beijing to cut key policy rates to shore up activity.

Chinese property giant Country Garden is seeking to delay payment on a private onshore bond and a major Chinese trust company that traditionally had sizable exposure to real estate, Zhongrong International Trust Co, has missed some repayment obligations.

Hedge funds are increasingly wary of their exposure to China. A raft of US-based hedge funds, including Coatue, D1 Capital and Tiger Global, cut their positions in Chinese stocks in the second quarter, as the country's economic prospects already seemed to wobble and geopolitical tension increased, securities filings showed on Monday.

With inputs from Reuters

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