According to @business (Bloomberg), an ETF favored by China’s so-called national team is set to record its fifth consecutive monthly outflow, the longest streak since 2020, indicating investors are taking profits after a multi-month rally (source: Bloomberg/@business). This marks a notable withdrawal of support from a key state-linked vehicle that traders monitor for A-shares sentiment and liquidity cues during Asia hours (source: Bloomberg/@business). For crypto, Asian risk tone can influence intraday liquidity and volatility in BTC and ETH during Asia trading hours, as documented by Kaiko Research in 2023 on regional market microstructure (source: Kaiko Research, 2023). Traders may watch Hong Kong-listed spot BTC and ETH ETFs as an additional regional flow indicator following their launch disclosures by HKEX and the SFC in April 2024 (source: HKEX and SFC, April 2024).

According to The Kobeissi Letter, China's Caixin Manufacturing PMI dropped by 2.1 points to 48.3 in May 2025, its lowest since September 2022 and the first contraction since September 2024. This index, which tracks small and medium-sized non-state businesses, signals weakening economic activity and increased risk sentiment in Asian markets (source: The Kobeissi Letter, June 3, 2025). Crypto traders should monitor potential capital outflows from Asian equities and increased volatility in major cryptocurrencies, as risk-off sentiment could drive investors toward stablecoins or alternative assets.

According to QCPgroup, while Asian markets have stabilized, any renewed strength in the Hong Kong Dollar (HKD) could trigger another drop in HIBOR rates, risking a disorderly unwind in financial markets. Additionally, speculation around easing US-China tensions has increased risk appetite across Asia. This shift in sentiment is significant for cryptocurrency traders, as heightened risk appetite often leads to greater capital flows into digital assets, especially in Asian trading sessions (Source: QCPgroup on Twitter, May 8, 2025).