China sees 'unprecedented' outflows since Russian invasion of Ukraine

‘Unusual’ activity in emerging markets

China has seen “unprecedented” daily outflows since Russia’s invasion of Ukraine in late February, according to data from the Institution of International Finance.

The organisation called the activity in global capital flows into emerging markets "unusual" because China has consistently seen steady inflows throughout the ups and downs over the last two years, "even through China-specific shocks like US tariffs and the early stages of Covid". IIF researchers added: "So it is all the more notable that we are now seeing unprecedented capital outflows from China, which began after Russia's invasion of Ukraine in late February. "Of course, at this stage it is too early to say if the war is driving outflows or if other factors are to blame. But we thi...