Europe's largest asset management institution sells US dollar assets.

The largest asset management institution in Europe, East Capital, said that the company will continue to reduce its USD asset risk exposure and shift towards Europe and emerging markets. Valerie Baudson, CEO of East Capital, stated that in the coming year, East Capital will advise clients to reduce their USD assets. She warned that if US economic policies do not change, "we will continue to see a weakening of the USD." Baudson said, "Over the past 12 to 15 months, East Capital has been strongly advocating for investment diversification and advising clients to diversify their investments... In the coming year, we will continue to advise clients to achieve portfolio diversification." East Capital has become the latest large investment institution to explicitly state its intention to reduce or hedge its US asset risk exposure. In January, Sweden's largest private pension fund, Alecta Pension Fund, stated that due to the "unpredictability of the US government and the growing US debt," the fund had sold most of its US Treasury bonds in the past year. Baudson mentioned that in the past year, international investors initially hedged USD depreciation risk by purchasing gold, which largely explains the sharp rise in gold prices during the same period. The company later found that people wanted to diversify their investments to achieve asset diversification, as USD assets were facing issues of overinvestment. It is reported that the above-mentioned trends have driven capital flows towards European and emerging market assets, including bonds and stocks. Last year, emerging market stocks had their best performance since 2017.