Investors have been fleeing from positions in Chinese and European markets over the past month.
The Institute of International Finance said the scale of outflows from China is “unprecedented.”
Additionally, investors have pulled out more than $23.4 billion from Western European stock funds.
Over the past month since Russia invaded Ukraine, investors have been fleeing from positions in Chinese and European markets.


New data revealed large portfolio outflows from Chinese equities and bonds, according to a Thursday report from the Institute of International Finance.

“Outflows from China on the scale and intensity we are seeing are unprecedented, especially since we are not seeing similar outflows from the rest of emerging markets,” Robin Brooks, the IIF chief economist, and his colleagues wrote.

“The timing of outflows — which built after Russia’s invasion of Ukraine — suggests foreign investors may be looking at China in a new light, though it is premature to draw any definitive conclusions in this regard.”

Foreign investors reduced their Chinese government bond holdings at a record pace in February. Western sanctions that have frozen Russia’s foreign assets have led to speculation that Moscow may sell Chinese debt to raise funds. Chinese stocks have also fallen recently on fears that the sanctions against Russia could eventually hit its ally.

S&P slashed Russia’s debt to junk and says there are already 30 corporate ‘fallen angels’ as a result of the war. Here are 5 charts that show the hit to ‘Russia Inc’s’ creditworthiness

1 of 6 Photos in Gallery©Sergey Bobok/Getty Images

S&P slashed Russia’s debt to junk and says there are already 30 corporate ‘fallen angels’ as a result of the war. Here are 5 charts that show the hit to ‘Russia Inc’s’ creditworthiness
Ratings agency S&P Global has downgraded a slew of companies since the start of the war in Ukraine.
This week, the agency cut Russia’s sovereign rating deep into junk as sanctions have slammed its economy.
The agency said there are already 30 corporates that have tumbled into junk territory as a direct result of the war.

By block head

Block Head is a blockchain journalist.