China debt: foreign investors cut Chinese bonds, dumped equities in July, IIF says

Chinese debt witnessed outflows of around US$3 billion last month, according to the Institute of International Finance (IIF)

If confirmed by official data, it would be the sixth consecutive month of foreign outflows from China’s US$20 trillion bond market

Reading Time:2 minutes

Chinese debt witnessed outflows of around US$3 billion last month, according to the Institute of International Finance (IIF). Photo: Xinhua

Published: 2:36pm, 4 Aug 2022

Foreign investors continued to cut holdings in Chinese bonds in July and dumped equities for the first time in four months, according to a report by the Institute of International Finance (IIF).

Emerging markets posted a fifth straight month of portfolio outflows, setting the longest such streak in records going back to 2005, as global recession risk, inflation and a strong dollar drew away cash, showed the report released on Wednesday.

Chinese debt witnessed outflows of around US$3 billion last month, while US$6 billion exited other emerging markets, IIF estimated.

If confirmed by official data, it would be the sixth consecutive month of foreign outflows from China’s US$20 trillion bond market.

China’s A-shares saw a rangebound, generally weaker trend since July under both domestic and overseas influences

China International Capital Corporation

During the same period, China’s stock market witnessed US$3.5 billion of foreign outflows, compared with marginal inflows of US$2.5 billion in other emerging markets, IIF added.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x