China faces largest bank run in history; nearly 4 trillion yuan withdrawn in April.

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Some context: www.bloomberg.com/news/articles/2024-05-20/china-s-capital-outflow-surges-to-highest-since-2016-in-april

“Chinese banks wired a net $29.5 billion worth of funds overseas on behalf of clients for direct investment, which was a record high. This measure includes both foreign investment into China and China’s outbound investment overseas.

The collapse in China’s foreign direct investment inflows may be more a reflection of comparatively higher interest rates in the US than of foreign firms losing interest in China, Bloomberg analyst Gerard DiPippo wrote in a note last week. Non-resident firms — including Chinese firms with Hong Kong offices — may have moved their cash offshore to benefit from higher yields, he wrote.”

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