Daily Management Review

FT: China restricts investors' access to overseas assets due to capital flight


01/25/2024


According to the Financial Times, Beijing has imposed limitations on investors' access to overseas assets in an effort to halt capital flight.



Chris via flickr
Chris via flickr
It has been noted that the authorities have limited retail investors' access to funds that purchase foreign equities.

"The government's Qualified Domestic Institutional Investor program is the only avenue for Chinese ordinary investors to invest in overseas assets. 186 funds have signed up," the publication writes.

The article claims that there are just a few possible investment sizes. It was worth $166 billion the previous year. At that 53 funds restricted investments and 79 funds ceased selling overseas assets. The Shanghai Stock Exchange "unofficially asked" to decrease sales despite a marked surge in demand for these products, a source at one of the funds told the Financial Times.

Early in December 2023, Moody's experts reaffirmed China's high rating but lowered the nation's outlook from "stable" to "negative" because of the country's growing public debt and concerning economic conditions.

source: ft.com