Foreign investors cut their holdings of Chinese bonds in yuan by more than $16 billion in April, marking a third straight month of outflows.
Global investors started scaling back their investments in February, amid concerns about the geopolitical risks of investing in Chinese assets, and about the economic impact of China’s tough approach to Covid-19. Yields on Chinese sovereign bonds last month fell below those on equivalent U.S. Treasury notes for the first time in more than a decade, further reducing the former’s appeal.
International holders reduced their total positions by a net 108.5 billion yuan, the equivalent of $16.1 billion, according to data from two clearinghouses, the China Central Depository & Clearing Co. and the Shanghai Clearing House. That was slightly lower than the 112.5 billion yuan drawdown in March. Foreign holdings are largely, but not entirely, composed…
