Beijing’s close ties with Moscow may be rattling foreign investors, who are selling Chinese stocks and bonds while staying put in other emerging markets. The vote of no-confidence slows China's push to woo stable institutional money, says petesweeneypro
An investor looks at an electronic board showing stock information at a brokerage house in Shanghai, China July 6, 2018. REUTERS/Aly Song - RC1CDAB1A6B0HONG KONG, March 28 - Beijing’s close ties with Moscow may be rattling foreign investors.by the Institute of International Finance found that China has been experiencing “unprecedented” capital flight since Russia invaded Ukraine. The study found no similar outflows from other emerging markets, adding insult to injury.
China’s technocrats have only started to make progress attracting global portfolio managers long wary of the People’s Republic. While Chinese shares comprise 9% of global equity values, mainland-listed companies constitutedof international investors’ fund allocations in 2020.
It is now easier for money managers to repatriate funds at will, and embarrassing distortions – like arbitrary trading halts – have been fully or mostly closed. Passive index providers started to include onshore Chinese shares and bonds in their benchmarks, and international funds began steadily upping their China exposure, disregarding both the trade war and the pandemic.The Ukraine invasion may be giving them reason for pause.
An exodus of pension funds and insurers who buy and hold assets for long periods of time will be painful. Although small in absolute terms, their presence helps anchor market valuations and reassure local traders, who tend to distrust local analysts and ratings agencies. State media presents global investor enthusiasm for China as endorsing its authoritarian government.
If the capital flight is sustained, it could aggravate the current selloff at a politically sensitive moment; President Xi Jinping is set to be elected to a third term later in the year. For reformers, it marks a setback in Beijing’s campaign to woo institutional money.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China confirms all on board China Eastern plane died in crashFlight MU5735 was travelling from Kunming to Guangzhou on Monday when it plummeted from cruising altitude to crash in a heavily forested area of Guangxi region.
Read more »
Second 'black box' in China Eastern plane crash recoveredThe recovery of the second black box could help solve the mystery of the jet's breakneck descent in which all 132 people on board were killed.
Read more »
Second ‘black box’ found in China Eastern plane crashThe second “black box” has been recovered from the crash of a China Eastern Boeing 737-800 that killed all 132 people on board last week.
Read more »
With eye to China investment, Taliban now preserve BuddhasAfghanistan's Taliban rulers are working to protect ancient Buddha statues in caves carved into cliffsides outside Kabul. One reason: They’re pinning their hopes on China to develop the site, believed to hold the world's largest deposit of copper.
Read more »
Second 'black box' found from China Eastern plane crash that killed 132Firefighters taking part in the search found the flight data recorder on a mountain slope about 130 feet from the point of impact and 5 feet underground.
Read more »