Chinese investors are shifting more money into overseas assets as the Federal Reserve’s interest-rate hikes add allure to dollar deposits and bonds, putting pressure on slumping local stocks.
Outflows have been growing this year through two key channels that allow investors to buy assets abroad through licensed institutions. That’s straining regulatory quotas as local firms and onshore units of global giants like JPMorgan Chase & Co. and BlackRock Inc. race to tap the demand.
The issuance of Qualified Domestic Institutional Investor funds jumped to 26 this year as of June 13, poised to set a new half-year record, according to data compiled by Bloomberg. Banks launched 144 wealth management products in foreign currencies, mostly dollars, in the first four months, a surge of 177% from a year earlier, according to consultancy PY Standard.
Read the full story on Bloomberg here.