Chinese Investors Dump U.S. Bonds, Turn to Europe and Gold for Safety

Deutsche Bank says many Chinese investors are moving their money away from U.S. assets due to growing concerns over unpredictable American policies, especially with rising tariffs. Instead of holding U.S. Treasuries, they’re now looking at safer alternatives like gold, Japanese government bonds, and top-rated European debt.

According to Lillian Tao, who heads China macro and emerging market sales at the bank, there’s been a clear shift toward Europe, largely because of its improved economic outlook. Factors like Germany’s stimulus plans and the possibility of the European Central Bank cutting interest rates have made European markets more attractive to Chinese investors seeking stability.