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Ukraine War Spurs ‘Unprecedented’ China Outflows – CNN

Investors are “ditching China on an unprecedented scale”, because of Beijing’s zero-Covid policy, the global rise in interest rates, and sanction risks from Russia’s war in Ukraine, it says


Russian invasion of Ukraine
A woman with a child evacuate from a residential building damaged by shelling in Kyiv, as Russia's attack on Ukraine continues. Some foreign investors fear China might also be hit with sanctions if it is seen to support Russia's invasion. Photo: State Emergency Service of Ukraine, via Reuters.

 

Foreign investors are “ditching China on an unprecedented scale,” because of a mix of local and international factors such as Beijing’s “unwavering” zero-Covid policy which has spurred multiple city lockdowns, the global rise in interest rates, plus business and geopolitical risks, a report on CNN says.

The Chinese economy suffered $17.5 billion in bond and equity outflows in March, it said, citing recent data from the Institute of International Finance on the “accelerating” retreat from Chinese bonds, plus academics who said investors fear China could be hit with sanctions because of its strong ties with Russia amid the war in Ukraine.

Read the full report: CNN.

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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