Foreign Investors Are Fleeing Chinese Stocks And Bonds As Beijing’s Economic Woes Worsen

Global investors have begun avoiding Chinese stocks and bonds, as the world’s second-biggest economy falters following three years of zero-Coronavirus lockdowns.

According to Bloomberg data, foreign traders withdrew $188 billion, or 17%, from the country’s equity and debt markets between December 2021 and June 2023.

The departure from China accompanies Beijing confronting various financial issues, including more fragile than-anticipated development, a drooping renminbi, and a property market that is going through the beyond two years staggering starting with one emergency then onto the next.

Worldwide investment has additionally reasonably evaporated because of the hardline strategies of President Xi Jinping, whose third term in office has corresponded with bans for US semiconductor organizations like Micron and an administrative crackdown that cleared an expected $1.1 trillion off the market worth of neighborhood Big Tech companies.

According to a recent Bank of America survey, “Avoiding China” has emerged as one of the top priorities for investors this year.

A team of strategists led by Michael Hartnett wrote in a research note last week that only 15% of the top fund managers polled by the bank anticipate Beijing implementing a “bazooka” stimulus package that would give stocks and bonds a much-needed boost and revive the economy.