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China’s Net Portfolio Outflow Hits Eight-Month High Amid Middle East Tensions

Published: Apr. 17, 2026  1:05 p.m.  GMT+8
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China recorded a $53.2 billion net outflow in portfolio investment in March, the largest in eight months, as the U.S.-Iran conflict fueled global market volatility.

The outflow, based on client transactions handled by domestic banks and compiled by the State Administration of Foreign Exchange (SAFE), underscores how Middle East tensions are rippling through Asian markets.

China’s benchmark CSI 300 Index fell more than 7% in March, while overseas investors’ holdings of yuan-denominated bonds dropped by $134.2 billion.

China’s Biggest Net Portfolio Outflow in Eight Months

A SAFE spokesperson said portfolio flows fluctuated with global market moves and have gradually stabilized since April. 

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  • China recorded $53.2B net portfolio outflow in March, largest in 8 months, amid U.S.-Iran conflict volatility.
  • CSI 300 Index fell >7%; overseas yuan bond holdings dropped $134.2B.
  • Goods trade surplus $50.7B; flows stabilizing since April, per SAFE.
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