by John Hayward at Breitbart
The Institute of International Finance (IIF) issued a capital flows report on Wednesday that predicted foreign investors will withdraw $65 billion from China in 2024. The capital outflow has been especially pronounced in China’s bond market.
The IIF found foreign entities pulled $3.7 billion from Chinese bonds and equities in November, pouring a good deal of their money into emerging markets instead.
The report expected flows to emerging markets will “benefit from the fall in global inflation, as advanced economy central banks turn less hawkish,” while flows to China will be “held back by elevated geopolitical risk and a change of investor sentiment.”
Investors are paying attention to the stock market at a securities business hall in Fuyang, China, on December 5, 2023. (Costfoto/NurPhoto via Getty)
That change in “sentiment” includes growing interest in “de-risking” by moving investments and manufacturing capacity out of China. The Wuhan coronavirus pandemic and the Chinese Communist Party’s periodic crackdowns on business made international investors and corporations nervous about keeping too many eggs in the China basket.
The significant pace of de-risking described by the IIF report demolishes…
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