- Advertisement -
China is witnessing an “unprecedented” outflow of capital since the beginning of the Russia-Ukraine military conflict in February and the level has almost reached the March 2020 level that marked the Covid outbreak.
The scale and intensity of the outflow are unprecedented as the same is not observed in the rest of the emerging markets.
The timing of the change in the level suggests that Russia’s military conflict with Ukraine is probably driving the foreign investors to review their positions.
Government Bonds have also faced similar pressure. Outflows during March may be caused by the US delisting its concerns, Worsening coronavirus outbreaks, the negative impact of sanctions on Russia, and the US interest rate hike vis-a-vis China.
- Advertisement -