China has been experiencing “unprecedented” capital flight since Russia invaded Ukraine, this has been linked to Beijing’s close ties with Moscow.
This is according to a study by the Institute of International Finance, which found no similar outflows from other emerging markets, adding insult to injury.
Outside of Russia, Chinese bourses are the worst-performing in the world, with daily average outflows reaching nearly $500 million at one point, according to IIF data.
China’s technocrats have only recently begun to attract global portfolio managers who had previously been sceptical of the People’s Republic.
Since Russia invaded Ukraine, China has seen “unprecedented” capital outflows, according to research issued by the Institute of International Finance, the global financial services industry’s trade body.
“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,” the report authors wrote.
Mainland-listed businesses accounted for only 2.7% of international investors’ fund allocations in 2020, despite Chinese shares accounting for 9% of global equities prices.