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Brad Setser comments on the significant influence that Asian government pension funds, such as NPS and GPIF, have on market outcomes.
Setser states that this perspective is consistent with his longstanding views regarding the impact of these large institutional investors.
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Setser has previously noted that Chinese state banks have consistently increased their foreign asset holdings, with net accumulation outpacing any declines over time here. In a separate report, he highlighted that the annualized external sum has climbed to $600 billion, slightly above IMF projections here. These observations align with his continued focus on the role of large institutional flows in global markets.