Foreign Investors Flee China Over Debt Worries, Slowing Growth
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American investors are withdrawing money from Chinese stocks and bonds due to worries over China's debt burden, economic slowdown, and ineffective stimulus.
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After years of strong inflows, 2022 saw $31 billion in net outflows from Chinese markets.
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Private equity funds specializing in China also saw money inflows drop from $140 billion in 2019 to just $4 billion so far in 2023.
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U.S. government policies like tariffs and chip export restrictions have contributed to investors' negative views on China.
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This withdrawal of foreign money could become a self-fulfilling prophecy, depriving China of investment needed for financial and technological improvements.