Chinese Investors Shift More Cash Abroad in Blow to Domestic Stocks

(Bloomberg) — Chinese investors are shifting more money into overseas assets as the Federal Reserve’s interest-rate hikes add allure to dollar deposits and bonds, putting pressure on slumping local stocks.

Outflows have been growing this year through two key channels that allow investors to buy assets abroad through licensed institutions. That’s straining regulatory quotas as local firms and onshore units of global giants like JPMorgan Chase & Co. and BlackRock Inc. race to tap the demand.