China Records $45.7 Billion Capital Outflow

China's capital markets recorded a historic outflow of $45.7 billion in November, driven by heightened investor unease following Donald Trump's U.S. presidential election win. Cross-border portfolio investment receipts were $188.9 billion, while payments reached $234.6 billion, marking the largest monthly deficit on record. The outflow reflects declining market confidence despite recent policy measures by Beijing aimed at revitalizing an economy struggling with a property crisis and deflation. Additionally, foreign institutions have reduced their holdings in Chinese onshore bonds for the third month in a row. The Institute of International Finance noted that the strengthening U.S. dollar has significantly influenced portfolio flows in emerging markets, including China. The outlook for recovery into 2025 hinges on the effective implementation of stimulus policies announced during the Central Economic Work Conference.