@jolyonAmerican investors pulled $3.4B from major China ETFs over the last three months, marking the biggest yearly outflow streak in recent memory. This shift reflects a decade of U.S. tightening on military-linked firms, outbound screening for semiconductors and AI, audit rules forcing delistings, and expanded CFIUS reviews. In response, China implemented tighter capital controls, dual-circulation self-reliance, and heavier state direction of its markets. One system allows private capital to vote with its feet while the other keeps more capital locked inside. Votes are leaving now. Data via KobeissiLetter, written by Lucas.

@jolyonAmerican investors pulled $3.4B from major China ETFs over the last three months, marking the biggest yearly outflow streak in recent memory. This shift reflects a decade of U.S. tightening on military-linked firms, outbound screening for semiconductors and AI, audit rules forcing delistings, and expanded CFIUS reviews. In response, China implemented tighter capital controls, dual-circulation self-reliance, and heavier state direction of its markets. One system allows private capital to vote with its feet while the other keeps more capital locked inside. Votes are leaving now. Data via KobeissiLetter, written by Lucas.