Capital exodus in China, emerging markets

China and over 20 other emerging markets are undergoing their worst wave of capital exodus in around seven years, a global financial industry association has warned, reports the South China Morning Post. Overseas investors withdrew $2.5 billion net from Chinese bonds in June, according to data from the Institute of International Finance (IIF), while $9.1 billion net flowed into other emerging markets’ bonds last month.

But a net total of $4 billion was withdrawn from emerging markets’ equities and bonds combined in June, marking the fourth straight month of net losses, the Washington-based IFF said.

Overseas investors still deposited $9.1 billion into China’s equities in June, compared with outflows of $19.6 billion in other emerging markets, the IIF added.