Investors Flee China Markets Amid Yuan Slide, Sparking Biggest Capital Outflow Since 2016
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Investors continue withdrawing money from China's stock markets amid falling prices, adding to biggest capital flight since 2016 per Goldman.
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Foreigners were net sellers of $3.3B of A shares last week; outflows so far in October total $5.1B, about half of region's net outflows.
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With higher US rates and need for more China easing, pressure for capital outflows and yuan depreciation persists, Goldman says.
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Chinese stocks have struggled last 6 months as Beijing held off on jump-starting economy after initial enthusiasm for zero-COVID pivot faded.
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Despite elevated trade surplus, China only saw $15B net inflow in September vs $26B in August, suggesting firms keeping more export earnings abroad amid yuan's drop.