The scale of China’s outward investment makes it a potentially powerful force in many markets, but also leaves China with few alternatives to foreign government debt for the bulk of its purchases.

The sustainability of China’s purchases of US Treasuries is once again being called into question. While the circumstances have shifted, much of the concern is familiar and still, we think, misguided.

Some glimmers of light in the monthly data from China are raising hopes that the world’s third largest economy may be through the worst after quarterly growth slumped in Q4. But we fear that incoming...

Hot capital continues to flow out of China, although October’s flood has since diminished. This raises the chances of a modest renminbi depreciation against the dollar over the coming year.