On the contrary, the market is signaling that Chinese consumers are reducing their spending, choosing to save even more.

> [These sales] will help finance the deficits without running up a dangerous amount of debt in foreign currency.

That's why they're selling!

The arbitrage, really, is that sales of this nature are very technical and not well understood by consumers. They signal bear market like a yield curve inversion does. But because it's so technical, the average person's confidence isn't impacted the same way that a headline, "China is Hunting for Foreign Buyers of its Empty Apartments" would.

Even though both have similar macroeconomic effects, given enough scale.

The idea that Chinese citizens save most of their income has been wrong for about a decade. They're carrying a lot of private debt.

> sales of this nature... signal bear market like a yield curve inversion does

How? How is this different from the treasuries the US sells every year?