Chinese equities have seen total outflows of $4bn as a result of the escalating trade war between the US and China, reversing a strong appetite for risk assets that has reigned since the beginning of the year.
According to data from the Institute of International Finance (IFF), outflows from Chinese equities amounted to $2.5bn last week, averaging $600m daily. Outflows from non-resident portfolios have continued into this week too, rising to $1.5bn on Tuesday 14 May. In total, outflows have amounted to $4bn since the trade war tensions began again, the largest sine October 2018. Last week, US President Donald Trump more than doubled tariffs on $200bn worth of Chinese imports to 25%, while threatening to impose new tariffs on $300bn worth of goods later on. China retaliated with its own tari...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
