China Faces $3.4B Equity Outflows in December While Other EMs Attract Investment
• China hit with $3.4 billion equities outflow in December as investors eye other emerging markets • Chinese bonds saw small $189 million inflow, confirming bifurcation between China and other EMs • Other EMs saw $29 billion combined inflows for 2nd straight month as sentiment improves • Analysts expect more PBOC rate cuts to support economy, but may weaken yuan further • PBOC pledges to maintain stable yuan while preventing cross-border capital flow risks