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Chinese Households Shift Cash Amid Trade Tensions

10/17/2025

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Summary

Story summary

Chinese households increased cash holdings by 2.96 trillion yuan in September, signaling a retreat from stocks amid rising US-China trade tensions.
The shift may weaken market support as households reduce equity investments.
The MSCI China Index fell 5.2%, signaling caution.
Morgan Stanley says a 10-15% correction in Chinese stocks could present a buying opportunity if President Xi Jinping of the People's Republic of China meets President Donald Trump this month.

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Story summary

Chinese households increased cash holdings by 2.96 trillion yuan in September, signaling a retreat from stocks amid rising US-China trade tensions.
The shift may weaken market support as households reduce equity investments.
The MSCI China Index fell 5.2%, signaling caution.
Morgan Stanley says a 10-15% correction in Chinese stocks could present a buying opportunity if President Xi Jinping of the People's Republic of China meets President Donald Trump this month.