U.S. Investors Lead Equity Exodus out of China
U.S. Investors Lead Equity Exodus out of China (Bloomberg)
United States investors let their portfolios do the talking two days ago, on March 10, 2014. That’s when they withdrew more than $87.5 million from exchange-traded funds focused on China — the most out of 46 nations investing in such plays. That brings the year-to-date total to $380.7 million, according to Bloomberg. This equity exodus was precipitated by official data showing Chinese exports dropping to their lowest level since 2009, the slowest inflation rate in 13 months and the country experiencing its first bond default. Is this the beginning of the Beijing Bubble popping? Or a hiccup along the way to becoming the world’s largest economy? You decide.