Analysts estimate that over the past 2 years, foreign investors have been massively getting rid of Chinese stocks, disappointed by the strengthening of Xi Jinping's influence and the growing geopolitical tensions between the United States and China. Experts believe that the outflow of investors is associated with an increase in the risks of investments in China. The unfavorable economic indicators of the PRC in recent years, especially the uneven recovery after the COVID-19 pandemic, serve as a kind of «fuel» for such a development. If we talk about numbers, institutional investors have sold $148 billion worth of net Chinese bonds since the beginning of 2022, which led to a sharp drop in Chinese stocks. In addition to the challenges of post-pandemic recovery, there are long-term structural problems in China, such as the accelerating aging of the workforce, low productivity, increasing inequality and a general property crisis. In addition, the risk of investing in Chinese securities increases due to the low return on assets. Many institutional institutions prefer other markets, such as India. This further strengthens China's competition in the international arena and calls into question its leadership in the field of economic development and innovation. The situation with the outflow of investors raises serious concerns both among the Chinese authorities and the international community. The negative dynamics in the Chinese financial market is a serious challenge for the country and requires active measures on the part of the Chinese authorities to restore confidence and stimulate economic growth.
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