China has become a crucial source of liquidity for the global financial system: China's non-official sector holdings of overseas assets surged +$260 billion in Q3 2025, to a record $1.95 trillion. This marks a +$1 trillion increase over the first 3 quarters of 2025, more than doubling the average annual growth over the last 10 years. Over this period, Chinese private investors bought +$535 billion worth of US and European stocks and bonds, outpacing any full-year increase over the last two decades. The surge was driven by a record $1.2 trillion trade surplus, with ~66% of foreign assets ending up with companies, individuals, and state lenders rather than the central bank. As a result, China’s central bank reserve assets rose just +$230 billion in the first 3 quarters of 2025. China used to park most of its export earnings in central bank reserves, but now those funds flow through the private sector into global markets. The global financial system is becoming increasingly reliant on liquidity sourced from China.