China's bond market bleeds $83bn as foreign investors cut holdings

Concerns over Russia sanctions may be limiting Chinese exposure, analysts say

China's currency is under pressure as foreign investors sell stocks and bonds. © Reuters

TAKESHI KIHARA and AKIRA INUJIMA, Nikkei staff writers

October 7, 2022 02:20 JST

Updated on October 7, 2022 16:23 JST

HONG KONG/TOKYO -- Overseas money continues to flow out of Chinese stocks and bonds as a rapidly cooling economy and interest rate shifts drive investment to other destinations.

Foreign investors' holdings of Chinese bonds fell for a seventh straight month in August, dropping by a net total of 594 billion yuan ($83 billion) to 3.48 trillion yuan, according to data from sources including China Central Depository & Clearing. September saw another net outflow from mainland Chinese shares traded through Hong Kong.