Foreign investors withdrew approximately $3.5 billion from Chinese equities in August 2026, nearly identical to the $3.7 billion that fled in July, illustrating a sustained retreat from the world’s second-largest economy. Chinese bonds attracted only $0.2 billion in inflows, showing targeted aversion to equity risk rather than blanket rejection of Chinese assets. Across emerging markets, total nonresident portfolio flows reached $11.3 billion in net inflows in August, with debt markets posting $26.7 billion in inflows in July, more than offsetting equity outflows. Asia as a whole showed signs of stabilization, with equity outflows dropping to $4.8 billion in July from $40.5 billion in June.
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