For the first time since 2017, investments in other financial markets of Asian countries have overtaken investments in China, according to the latest data from the global investment bank “Goldman Sachs”.
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For the first time in six years, stocks in Asia’s largest country saw less money flowing into stocks than neighboring emerging markets. “The Financial Times” writes that investors’ optimism about the Chinese economy is waning.
Data collected by “Goldman Sachs” show that over the past 12 months, foreign investments in Asian financial markets, excluding China, exceeded 41 billion US dollars, while about 33 billion dollars flowed into China.
The move represents a disappointment in expectations of China’s rapid recovery after the lifting of Covid-19 restrictions and highlights how other countries in the region are benefiting from supply chain restructuring and strong demand for semiconductors from the US.
Commenting on the latest data, Sunil Cole, Goldman Sachs Asia-Pacific equity strategist, points to China’s slow recovery, strong growth in other countries in the region and rising hopes that the US can avoid recession this year.
The deterioration of investor sentiment towards China was also reflected in Bank of America’s latest survey of Asian fund managers, which showed that around 260 respondents with more than $650 billion in assets under management had reduced their China exposure.
2023-07-21 06:48:52
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