China’s Traders Are Cashing Out as Love for Risky Assets Fades
- Nation’s companies face threat of slumping external demand
- Stock traders prefer to hold cash and assets deemed less risky
A security guard wearing a protective mask stands watch in Beijing on March 17.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Investor credit at China’s brokerages is disappearing at the fastest pace in 10 months as a bleak earnings outlook prompts the country’s investors to conserve cash.
Borrowed money in stock accounts fell 3.5% month-on-month in March to 1.1 trillion yuan ($148 billion), according to data compiled by Bloomberg. Stock turnover is down around 60% from a February peak, showing how quickly participation in the equity market has cratered.