As Chinese real estate developer Hengda (Evergrande) filed for bankruptcy protection with the New York court in the United States, global investors are withdrawing their funds from China en masse as concerns over a slowdown in China’s real estate economy grow.
Business Insider, an American economic media outlet, said on the 18th (local time), “Investors who bet on China’s growth after the Chinese government lifted’Zero Corona’ last year and restarted the economy, have been investing heavily in Chinese stocks and bonds as the real estate crisis has recently escalated. are selling,” he said.
According to data from Bloomberg, foreign funds recorded net outflows from Chinese stocks for the past nine consecutive days. During this period, a total of 46.2 billion yuan (approximately 8.4915 trillion won) was withdrawn. Over the past month, foreign institutional investors withdrew about 37 billion yuan (about 6.8 trillion won) from the bond market.
One of the reasons for the large-scale withdrawal of funds by foreigners is ‘concern over a slowdown in the real estate economy in China’. Although the Chinese government has promised a large-scale stimulus package, not only is there no specific stimulus package, but the recent real estate crisis has deepened.
The Chinese Communist Party promised last month that it would “promote a large-scale stimulus package right after the Politburo meeting, the highest legislative body of the Communist Party,” but so far no special measures have come out.
Right after the Politburo meeting, foreign funds temporarily recorded net inflows due to expectations of stimulus measures. However, it is interpreted that foreigners turned their backs on China when a special stimulus package was not forthcoming.
2023-08-19 12:55:19
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