Investors of all kinds are losing confidence in China, as it has slipped into the “alternative investment” category.
Recent data reveals that investors are pulling their money out of the world’s second-largest economy.
Exposure to Chinese stocks in December 2023 was down, as many investors now see Chinese stocks and bonds as non-correlated—meaning a risker bet to hedge against their core bets.
Alternative investments typically fall outside of traditional stock portfolios, and often pose higher risks while retaining a degree of appeal for those keen to diversify.
This has been evident from global capital flow trends.
A recent study of public pension and wealth-fund managers found that not one had a positive outlook for China’s economy or envisaged higher relative returns there.
