A $188 Billion Exodus Shows China’s Heft Fading in World Markets
- Data show foreign funds shunning China across asset classes
- MSCI China set for third annual decline, while EM gauge rises
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A massive retreat of funds from Chinese stocks and bonds is diminishing the market’s clout in global portfolios and accelerating its decoupling from the rest of the world.
Foreign holdings of the nation’s equities and debt have fallen by about 1.37 trillion yuan ($188 billion), or 17%, from a December-2021 peak through the end of June this year, according to Bloomberg calculations based on the latest data from the central bank. That’s before onshore shares witnessed a record $12 billion outflow in August alone.