๐ China: The New Global Liquidity Engine
China has shifted from hoarding central bank reserves to flooding global markets with private capital. In 2025, the "unofficial" sector became the primary driver of global financial liquidity.
๐ The Massive Capital Surge
Total Record: Non-official overseas assets hit $1.95 Trillion in Q3 2025.
Rapid Growth: A +$1 Trillion increase in the first 9 months of 2025 (Doubling the 10-year average).
Western Inflow: $535 Billion invested in US and European stocks/bondsโoutpacing the last two decades.
๐ The Structural Shift The "Great Wall of Capital" is no longer just in central bank vaults. It is moving through companies, individuals, and state lenders.
Trade Surplus: $1.2 Trillion (Record High)
Capital Flow: ~66% of assets went to the private sector/state lenders.
Central Bank: Reserves rose by only +$230 Billion.
๐ก Key Takeaway: The global financial system is now increasingly dependent on liquidity sourced directly from Chinaโs private sector rather than traditional sovereign reserves.
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