Taiwan’s Big China ETF Bust Shows Extent of Financial Decoupling
- Total AUM for Chinese-linked ETFs plunges 94% from peak
- Decoupling also seen in trade, finance, investment figures
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Taiwan’s economic and financial decoupling from China has deepened with the near-collapse of what was once the world’s largest Chinese bond exchange-traded fund market.
It’s the latest example of the widening gap in relations between the two economies over the past decade due to geopolitical tensions, Western-led derisking of supply chains and China’s economic slowdown. And no matter the outcome of January’s critical presidential election in Taiwan, the decoupling — from markets to finance to investments and trade — is likely to continue.