Record Outflows Hit China's Capital Markets in November
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China experienced a record $45.7 billion outflow from its capital markets in November, marking the largest monthly deficit in cross-border portfolio investment, as reported by Reuters, citing official data released on Monday by the State Administration of Foreign Exchange (SAFE).
The $45.7 billion outflow reflects a significant divergence between cross-border receipts and payments related to portfolio investments in stocks and bonds. While receipts totaled $188.9 billion, payments amounted to $234.6 billion, resulting in the largest monthly deficit ever recorded under this category.
This trend aligns with other recent indicators of capital movement out of China. Earlier on Monday, the People's Bank of China (PBOC) reported that foreign institutions had reduced their holdings of onshore Chinese bonds for the third consecutive month in November.
Separately, the Institute of International Finance (IIF), which tracks global portfolio flows, also recorded outflows in both China's bond and stock markets last month. The IIF attributed this trend partly to the strengthening of the US dollar following Donald Trump's re-election, which influenced portfolio flows in emerging markets, including China.