According to market experts, China has stopped the daily update of bond trading data for foreign institutions.
Daily data is now only available to domestic institutional clients, six people familiar with the matter said on Tuesday.
"The transaction data for May 12 in the category of foreign institutions has disappeared," one of the insiders gave as an example.
He speculated that this was due to a sharp devaluation of the yuan and significant capital outflows.
One reason for this is likely to be the corona wave, which has been paralyzing the financial metropolis of Shanghai with an officially ordered “lockdown” for weeks.
Many investors fear that the world's second largest economy after the USA could even slide into a recession due to the corona wave and therefore parted with Chinese securities.
Earlier data showed that foreign investors had been selling more than they were buying recently, another insider said.
According to data for the past two months, foreign investors have drastically reduced their holdings of Chinese bonds.
In April alone, they fell more than they had since August 2015.
According to the International Institute of Finance (IIF), China recorded the largest capital outflows of all in the first quarter.
"A similar trend was seen in April, with Chinese debt suffering a $2.1 billion outflow and Chinese stocks gaining only marginally," the IIF said in a report.
The national currency, the yuan, depreciated by more than 4 percent against the dollar in April.
One reason for this is slower Chinese growth, another the interest rate hikes by the US Federal Reserve.
The latter makes the dollar more attractive.Keywords: