International investors have been pulling money out of China on an “unprecedented” level since the Russian invasion of Ukraine, a report by the Institute of International Finance (IIF) has shown, and the yuan may well face increasing pressures over the coming months, reports the South China Morning Post.
High-frequency data detected large portfolio outflows from Chinese stocks and bonds, even as flows to other emerging markets held up, the IIF wrote in a report on Thursday.
“Outflows from China on the scale and intensity we are seeing are unprecedented, especially since we are not seeing similar outflows from the rest of emerging markets,” said the IIF report.
“The timing of outflows – which built after Russia’s invasion of Ukraine – suggests foreign investors may be looking at China in a new light, though it is premature to draw any definitive conclusions in this regard.”