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Here’s a chart showing China ETF outflows last week. Following large inflows on China stimulus measures, investors began pulling out again. The largest China ETF, FXI, saw a record $984 million in withdrawals last week. China Internet ETF, KWEB, experienced $710 million outflows last week, also the most on record. Even as hundreds of billions of Dollars of stimulus have begun, Chinese consumer sentiment is terrible. Over the last 3 years, consumer confidence in China is down ~ 50 points. Such a drop in consumer assessment of the Chinese economy has almost never been seen before. Meanwhile, China’s central bank is buying gold like its 2008 again. For 17 STRAIGHT months, China’s central bank has been stockpiling gold. Last year alone, China added 225 TONS of golds to its reserves. This was the biggest increase since 1977. Foreign firms are also pulling money out of China for the first time in 30+ years. In Q3 2024, investors withdrew $8.1 billion from China, according to recent data. Year-to-date, investors have withdrawn a total of $12.8 billion from China, the most since at least 1998. And even with the prospect of stimulus, deflation in China continues. Prices in China fell for the sixth consecutive quarter in Q3 2024, the longest streak since 1999. This is 3 times longer than during the 2008 Financial Crisis when deflation lasted for 2 quarters. Lastly, this brings us back to a terrifying chart for China’s real estate sector. China’s HY real estate index fell a 82% from its highs in 2 years. Evergrande, China’s real estate giant, filed bankruptcy. submitted by /u/FXgram_ |
Then save $10 a day, you dingus, and you’re good to go: experts reveal the truth
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