Foreign investors’ sales of Chinese yuan-denominated bonds picked up again in September, official data showed, reflecting continued pessimism over China’s economic outlook and the prospects for its currency.

International investors’ total holdings of Chinese government bonds and other yuan-denominated debt in mainland China dropped to 3.4 trillion yuan, the equivalent of $470bn, in September. That was the lowest level since December 2020, according to data released 28 October by the China Central Depository & Clearing Company and the Shanghai Clearing House.