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Translated by: MOS English Team – mingyue

It is reported on Tuesday that the Chinese Communist Party (CCP) had stopped updating daily bond trading data for foreign institutions. The CCP is providing daily data only to domestic institutional customers. Insiders said the May 12 trading data in the category of foreign institutions has disappeared.

Image Source: getty

The causes of the RMB’s devaluation include massive capital outflows and the CCP virus pandemic. The lockdown imposed by the CCP has paralyzed the financial center of Shanghai for two months. Foreign investors are worried that the world’s second-largest economy may accelerate the devaluation of the RMB because of the draconian lockdown policies of the CCP. This is causing foreign investors to dump Chinese securities.

The statistics shows that foreign investors have recently sold more than they bought. According to data from the past two months, foreign investors have significantly reduced their holdings in Chinese bonds. In April alone, the bond decline was the sharpest since August 2015.

Image Source: FT

According to the Institute of International Finance (IIF), Communist China experienced the largest ever capital outflow in the first quarter of this year. The IIF said that Chinese bonds suffered a $2.1 billion outflow in April, while Chinese stocks rose only slightly over the same period. The renminbi depreciating more than 4 percent against the dollar in April.


Edited by: MikeHua
Posted by: Peter Chen

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