DBS research identifies significant Chinese divestment from US securities over the past decade but notes the trend is not mirrored by other nations, limiting systemic impact.
DBS finds Chinese net outflows from US equities and bonds over the last decade have been substantial, which alone would weigh on USD demand. However, the strategist concludes China's de-dollarisation is not reflective of broader trends across other countries, limiting any systemic dollar-selling pressure.
Sustained Chinese net outflows from US bonds over the past decade reduce foreign demand for Treasuries, a factor that would pressure prices and lift yields. Yet the study's conclusion that other countries are not following China's de-dollarisation offsets this, leaving no clear directional catalyst for the 10-year yield.
Chinese net outflows from US equities over the last decade are described as substantial, a persistent headwind for US equity demand. But since the report frames this as a decade-long, China-specific pattern rather than an accelerating new trend, there is no fresh catalyst for an immediate price move.
DBS Group Research reports that China has seen substantial net outflows from US equities and bonds over the last ten years. While these movements highlight a focus on de-dollarisation, the firm concludes that this trend is specific to China and not representative of broader global shifts in asset allocation.
The report notes substantial Chinese net outflows from US equities and bonds over the last decade, but concludes this de-dollarisation is not representative of broader trends across other countries.
The report highlights substantial Chinese net outflows from US bonds over the past decade, but argues China's behaviour is not a broader trend, so no clear rise in yields is implied.
The report flags substantial Chinese net outflows from US equities over the last decade, but stresses this is a China-specific pattern not mirrored by other countries.