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Anonymous ID: 57d425 Oct. 25, 2023, 6:51 a.m. No.19799010   🗄️.is 🔗kun   >>9388 >>9464

Net outflow of funds from China hits 7-year high in September

 

(Remember that you can see this, roughly, in the Hang Seng HK Index)

 

BEIJING – Outflows of investment capital from China are growing, marking their biggest net decline in seven years and eight months in September. The trend is driven by foreign companies scaling back their operations in China and wealthy Chinese shifting funds abroad, analysts say.

The government is nervously eyeing the capital flight, imposing new restrictions on investors, as downward pressure on the Chinese currency grows.

According to China's State Administration of Foreign Exchange, which tracks monthly international financial transactions by domestic banks on behalf of businesses and households, the net outflow reached $53.9 billion in September.This is the largest amount since January 2016, when China logged a net outflow of $55.8 trigged by a sudden devaluation of the yuan called the "renminbi shock," among other factors.

 

The exodus of funds related to direct investment, such as construction of manufacturing plants, was noticeable in the September figures. The net outflow in that category reached $26.2 billion, roughly half the total and the largest amount since 2010, when comparable data first became available. The statistics do not indicate whether foreign or Chinese companies were main contributors to the transfer of funds from China. It may be that the drain in capital increased because Chinese companies are moving funds overseas in order to move into or expand in foreign markets.

 

Portfolio investment in stocks, bonds and other securities declined by a net $14.6 billion. As the Chinese economy struggles to bounce back from the pandemic, many foreign investors have grown leery of investing in the country. The balance of yuan-denominated bonds held by foreign investors through such means as Bond Connect, which allows investors from mainland China and overseas to trade in each other's bond markets through a link in Hong Kong, totaled about 3.2 trillion yuan ($436.93 billion) at the end of September, down some 20% from its peak at the end of January(Chinese investors sold $21.2B in US assets– primarily US Treasury bonds.)cap 2

 

Wealthy Chinese are also shifting their assets abroad out of concern over the future of China, according to many analysts. "Customer demand for transferring funds to real estate and other markets in developed nations began rising this spring," said an employee in the investment department of a Chinese financial institution.

In addition to the flight of investment capital, stagnant Chinese exports are weighing on the yuan.In the July to September quarter, sales of yuan to buy foreign currencies outpaced the reverse transaction by $38.6 billion, the largest figure in five years.

 

https://asia.nikkei.com/Business/Markets/Net-outflow-of-funds-from-China-hits-7-year-high-in-September

Anonymous ID: 57d425 Oct. 25, 2023, 7:34 a.m. No.19799166   🗄️.is 🔗kun   >>9388 >>9464

IRON IAF G550 ISR done and heading back to Nevatim AB

 

German AF GAF021 A400m departed Tel Aviv

 

The ‘regular’-for last 2 weeks IAF C130

 

RAF RRR6893 departed Alexandria NE

Anonymous ID: 57d425 Oct. 25, 2023, 8:14 a.m. No.19799340   🗄️.is 🔗kun   >>9388 >>9464

WTI Tumbles After Surprise Crude Build, Production At Record Highs

 

(Demand destruction is alive and well so the only surprise is those that don’t understand macro trends….eventually it will catch up after this FF affect wears off and you’ll see additional cuts)

 

Oil prices slipped lower this morning after treading water for most of the night after the API report.

Disappointing data on European economic activity helped weigh on oil prices Tuesday, as did the release of more Hamas hostages and the delay of the expected Israeli ground invasion of Gaza. Brent crude prices have remained stubbornly within the $90 per barrel range, emphasizing the medium-term outlook’s dependence on demand rather than supply.

API

  • Crude -2.688mm (+10k exp)

  • Cushing +513k

  • Gasoline -4.169mm (-300k exp) - biggest draw since March

  • Distillates -2.313mm (-1.1mm exp)

DOE

  • Crude +1.37mm (+10k exp)

  • Cushing +213k

  • Gasoline +156k (-300k exp)

  • Distillates -1.69mm (-1.1mm exp)

The official data was very different to API's with crude and gasoline both seeing inventory builds (as well as Cushing stockpiles rising off tank bottoms).

 

The SPR remained untouched for the 3rd week in a row(what about refilling it?) Bueller??. Cushing stockpiles remain barely off tank bottoms. US Crude production remained at record highs as the trend in rig counts continues lower… WTI was trading around $83.30 ahead of the official data and tumbled to an $82 handle after….

 

https://www.zerohedge.com/energy/wti-tumbles-after-surprise-crude-build-production-record-highs

 

https://tradingeconomics.com/commodities