
Chinese investors are flocking offshore to make dollar deposits and purchase Hong Kong insurance, highlighting dwindling domestic confidence and indicating further pressure on the yuan. The trend signals a deep concern about China’s economic state amid stalling post-pandemic recovery. Factors such as weakening consumer spending and stagnating property and stock markets are contributing to this outlook. Individual investors' ongoing surge in offshore investments could cause more strain on the yuan, already at eight-month lows. Mainland Chinese investments in Hong Kong and Macau wealth products have more than doubled since 2021, while new premiums on Hong Kong insurance policies skyrocketed 2,686% to US$9.6 billion in Q1 2023.