$3 Billion in Foreign Investment Leaves Chinese Bond Market

$3 Billion in Foreign Investment Leaves Chinese Bond Market


Contrary to reassuring pronouncements from Chinese Communist Party officials, the Institute of International Finance (IIF) reported on Thursday that foreign capital flight from China continued for the sixth consecutive month in July, pulling another $3 billion out of the $20 trillion bond market.

The IIF, an international trade group, also saw foreign investors dumping Chinese equities for the first time in four months, producing a net stock market outflow of over a billion dollars. IIF analysts said it was the longest losing streak for foreign capital in China since it began monitoring Chinese markets in 2005.

Analysts cited China’s economic slowdown, with growth dropping to only 0.4 percent in the second quarter, plus lingering fear of more draconian coronavirus lockdowns, the shaky Chinese

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