https://www.yahoo.com/finance/news/even-investors-china-bailing-chinese-234714766.html
Business Insider
Even investors in China are bailing on Chinese markets and putting their money in US assets instead
Jason Ma
Wed, June 14, 2023 at 4:47 PM PDT
Even investors in China are bailing on Chinese markets and shifting their money overseas.
Most of that Chinese money has been flowing into dollar assets, according to Bloomberg.
Expectations that the Fed will keep rates high have added to the appeal of US bonds and deposits.
Even investors in China are bailing on Chinese markets and shifting their money overseas as the world's second largest economy has stumbled.
In the first four months of this year, banks created 144 wealth management products in foreign currencies, mostly in US dollars, up 177% from a year ago, according to Bloomberg, which cited data from consultancy PY Standard.
Meanwhile, the issuance of qualified domestic institutional investor funds, which invest in securities in foreign markets, has reached 26 so far this year, on track for a record amount for a half-year span, Bloomberg said.
Expectations that the Federal Reserve will keep rates high have added to the appeal of US bonds and deposits, while the yuan and Chinese stock indexes have tumbled this year amid a disappointing post-COVID economic recovery.
That trend is seen remaining strong as the rate trajectories in the US and China diverge. Earlier this week, the People's Bank of China surprised markets by cutting a key interest rate to help boost the economy.
