China recorded the highest level of capital outflows in July since data collection began in 2010. This was driven by a significant increase in Chinese investors’ purchases of Hong Kong-listed stocks, along with the expansion of the Southbound Bond Connect program launched in the same month, which provided broader opportunities for investment in foreign bonds.
According to data from the State Administration of Foreign Exchange, local banks transferred a net $58.3 billion abroad on behalf of their clients for investment in equities during July, marking an unprecedented record level. In contrast, foreign funds continued to reduce their holdings of Chinese bonds due to their declining appeal compared to high-risk assets and other global alternatives.
Source (Al Arabiya.Net Website, Edited)
