Reaction
China’s equity outflows appear modest on net despite a recent pickup
Brad Setser says Chinese equity outflows have been modest after accounting for foreign inflows into Chinese stocks, both in absolute terms and relative to China’s surplus. He notes that outflows have picked up in recent years.
TLDR
Brad Setser says China’s large current-account surplus isn’t, in aggregate, being used to buy equities abroad, let alone in the US. He puts the swing in equity flows over time at about $300 billion as outflows have picked up in recent years, and says most of the outflow is generally thought to go to Hong Kong.
Combined views
2.8K
2 Sources, first seen 5h ago
