Record Outflow in China's Capital Markets

SHANGHAI (Reuters) – China's capital markets experienced a record outflow of $45.7 billion in November, based on official data tracking cross-border investments in stocks and bonds.

Cross-border receipts of portfolio investment totaled $188.9 billion, while payments totaled $234.6 billion, leading to the largest monthly deficit in this category according to foreign exchange regulator data released late Monday.

This portfolio data aligns with other capital data from China indicating a similar trend.

China's central bank reported that foreign institutions reduced their holdings in Chinese onshore bonds for the third consecutive month in November.

In addition, the Institute of International Finance (IIF), which monitors global portfolio flows, noted outflows in both China's bond and stock markets last month.

The IIF attributed these outflows to the strengthening of the U.S. dollar following Donald Trump's electoral victory, which influenced portfolio flows in emerging markets, including China.