Foreign Investors Keep Selling Chinese Bonds Despite Resilience

Foreign investors have pulled about $180 billion from Chinese bonds over the past year, underscoring how hard it is to retain overseas capital, even as the market held up better than most during the US-Iran war.

Overseas investors have been net sellers of yuan-denominated bonds for 11 straight months through March, the longest stretch since April 2020, when the central bank began publishing regular data, according to Bloomberg calculations based on those figures. Over that period, their holdings in the interbank market have shrunk 28%, or about 1.25 trillion yuan ($183 billion), to 3.19 trillion yuan.