Commentary Are global investors rethinking their allocation to China? Initial data suggests just that—investors are pulling money out of China at a dramatic pace since Russia’s invasion of Ukraine in February. The Institute of International Finance (IIF) noted in a recent report that investors cut their exposure to Chinese stocks and bonds at an “unprecedented” rate in February, even as flows into the rest of the emerging markets (excluding China) have held up. “The timing of outflows—which built after Russia’s invasion of Ukraine—suggests foreign investors may be looking at China in a new light, though it is premature to draw any definitive conclusions,” the IIF note said. It behooves institutional investors to examine not just what is happening in the markets today but what the global economic environment may look like years into the future. Most Wall Street investment banks have announced that they would pull out of their Russian …