April 25, 2022
1 min read

China pays big price for its pro-Russia stance

Overseas investors offloaded a net 35 billion yuan ($5.5 billion) of Chinese government bonds in February, the largest monthly reduction on record…reports Asian Lite News

Investors are ditching China at an unprecedented scale as a cocktail of political and business risks, and rising interest rates elsewhere, make the world’s second biggest economy a less attractive place to keep their money, the media reported.

China witnessed $17.5 billion worth of portfolio outflows last month, an all-time high, according to most recent data from the Institute of International Finance (IIF), CNN reported.

The US-based trade association called this capital flight by overseas investors “unprecedented”, especially as there were no similar outflows from other emerging markets during this period.

The outflows included $11.2 billion in bonds, while the rest were equities.

Data from the Chinese government also showed a record bond-market retreat by foreign investors in recent months. Overseas investors offloaded a net 35 billion yuan ($5.5 billion) of Chinese government bonds in February, the largest monthly reduction on record, according to China Central Depository and Clearing.

The sell-off accelerated in March, hitting a new high of 52 billion yuan ($8.1 billion), CNN reported.

“China’s support for the Russian invasion of Ukraine was clearly the catalyst for capital to leave China,” said George Magnus, an associate at the China Centre at Oxford University and former chief economist for UBS.

“There is nervousness about China’s ambiguous, but Russia-leaning stance on the Ukraine conflict, which raises worries that China could be targeted by sanctions if it helps Russia,” said Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics, who has studied China’s economy and US-China relations.

ALSO READ: India pips China in ‘Unicorn’ race

Previous Story

Price Rise Kills Easter Fest

Next Story

Taliban remove terrorist groups from Pak border

Latest from -Top News

Singapore’s Ruling Party Achieves Landslide Victory

Prime Minister Lawrence Wong, whose party won the election, thanked supporters.,..reports Asian Lite News Singapore’s ruling People’s Action Party (PAP) won 87 of the 97 seats in Parliament in Saturday’s general election,

Jaishankar, Lavrov Discuss Pahalgam Terror Attack

Both the Ministers discussed issues of Russian-Indian cooperation and the aggravation of India-Pakistan relations following the terrorist attack in Pahalgam. External Affairs Minister (EAM) S. Jaishankar spoke to the Russian Foreign Minister

Ukrainian forces to join VE  procession  

Ukrainian personnel will join around 1,000 UK armed forces members, including soldiers on horseback and military bands, to symbolise “the global support for their continued fight for freedom” against Russia  krainian armed

Rajnath Singh to skip Russia visit

The decision comes amid rising tensions between India and Pakistan following the recent terror attack in Pahalgam, Jammu and Kashmir…reports Asian Lite News Defence Minister Rajnath Singh will not likely attend Russia’s

WAVES 2025: Jaishankar Advocates Cultural Pluralism

External Affairs Minister S. Jaishankar delivered a powerful address at the WAVES 2025 Global Media Dialogue, highlighting the significance of cultural pluralism in shaping global change. Speaking on the second day of
Go toTop

Don't Miss

Chinese Covid vaccines cause leukaemia: Report

The document also indicates that the vaccines have caused many

China reports 132 new Covid-19 cases

Henan, home to about 100 million people, reported four new