Foreign Investors Flee as Chinese Markets Totter

Same old playbook no longer enticing to foreign capital

A worker rides a bicycle on a street in the Jing'an district of Shanghai on June 1, 2022. Hector Retamal /AFP via Getty Images

Commentary

Foreign investors continued to reduce their holdings of Chinese bonds in May for the fourth consecutive month. The divergent monetary policy between the United States and China, as well as a fundamental economic weakening, has driven foreign investors away from China in droves.