China Expected to See $65 Billion Capital Outflow in 2024

Rising tensions and concerns over the country's economy drive investors away, despite expected stabilization in the housing sector.

Foreign investors are expected to pull $65 billion in capital out of China in 2024 due to rising tensions and concerns over the country's economy, according to a report from the Institute of International Finance.
China's economy has continued to lack consistent signs of sustained growth since the COVID-19 pandemic, with poor results in the country’s purchasing managers indexes for November in both the manufacturing and service sectors.
The country is also plagued by a debt-laden real estate sector that could see even more developers default in the next year, with companies responsible for 40% of Chinese homes having already defaulted since 2021.
Despite concerns over China’s economy and real estate woes, the IIF sees the housing sector stabilizing in 2024, ending the two-year housing recession, with exports contributing positively to next year’s economic growth.
Investors are also concerned about tensions related to the ongoing trade war between the U.S. and China, with both countries vying for a competitive edge in the production of semiconductors used for militaristic and consumer aspects and technical research.