There has been a consistent capital outflow from China for almost a year and a half now (indicated by red columns). Foreign investors are losing interest in China.
Another notable trend is the significant drop in investment flows to emerging countries. This suggests two possibilities: either the developed world is waiting for the “Global Majority” and the “Global South” to recover, or there’s been a renewed interest in investing within their own developed countries. More time is needed to understand this trend clearly.
Interestingly, the aggregate data on portfolio investment flows in 2023 show no evidence of a surge into India that would be comparable to the decline in flows to China. No, India has not yet replaced China as the new promising country for investment.
